Abstract
The World Bank regularly publishes GDP-figures of its member countries, compiled at purchasing power parities. It employs the Geary-Khamis index for transforming the aggregates. That index consists of a system of homogeneous equations, which requires an additional non-homogeneous equation, to determine an appropriate unit of value measurement. This is the US-$, at present. The paper discusses that convention, points out its shortcomings, suggests an alternative existing, and adds an interpretation in terms of international economics.
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Reich, UP. A note on how to normalise the Geary-Khamis index of purchasing power parity. AStA Wirtsch Sozialstat Arch 12, 235–244 (2018). https://doi.org/10.1007/s11943-018-0233-0
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DOI: https://doi.org/10.1007/s11943-018-0233-0