Transcript National Price and Urban Prices

Linking Regions and Subregions
Regional and Country Aggregation
• Background
– When regions are linked at the basic heading level, in
ICP 2005 the EKS aggregation was done over 5
regions, combining EU/OECD/CIS.
– Let us call this Regional aggregation, which has the
property that regional totals at any level of aggregation
are preserved.
– By way of contrast Country aggregation with fixity
aggregates over GDP the basic heading parities of each
country using EKS . Country GDPs are then summed to
GDP in each region; they can then be distributed
according to the regional results preserving fixity
within each region and not across rows.
Linking Regions and Subregions
Comparing Regional and Country EKSs
• One motivation for Regional aggregation is negative,
namely the non-comparability across rows at any level of
EKS using Country aggregation with fixity.
• But is the problem with Country aggregation or with
fixity?
• Consider a comparison in 2005 of Korea with China. In a
Regional comparison, this is a 2nd class comparison,
because the 2 countries are not classified in the same
Region.
• Does any of this make a difference? First, let us compare
the regions including EKS and the CPD weighted or Rao
method, and then look at some of country differences.
Linking Regions and Subregions
Region and Country: Main Results
• Column 1 is the Regional 2005 published Result; 2 is EKS
over countries and 3 is the Rao labeled CPDw
• The largest change is a rise of about 10% for CIS, probably
because of use of Russia to link to OECD. However, the
Rao shows a much smaller change.
• Asia is up about 6%; South America is down about 5%; W.
Asia is up and the EU/OECD and Africa are down about
2%.
• For the Country aggregations weighted CPD/Rao in
column 3 and EKS are quite similar. Not shown are
unweighted G-K, which is similar to EKS and CPDw and.
weighted G-K, which shows the most difference on
average from the other methods.
Share of World Output by Region and Method
REGION
EKS(Region) EKS(country) CPW(Rao)
AFRICA
3.34
3.26
3.13
ASIA - PACIFIC
21.87
23.20
23.08
CIS
4.13
4.53
4.17
OECD-EUROSTAT
63.25
61.84
62.45
SOUTH AMERICA
5.60
5.31
5.28
WESTERN ASIA
1.82
1.86
1.88
World
100.00
100.00
100.00
Linking Regions and Subregions
Some Country Comparisons
• To maintain regional fixity, we can simply apply
the ratio of column (2) to (1) from the above Table
to the Final Report country shares of world output
within each region to obtain country shares.
• This allows us to compare countries across regions
using regions versus countries EKS aggregations,
• For sake of completeness, the 3rd column in the
next slide provides the individual EKS value
aggregating across countries without fixity.
Linking Regions and Subregions
World Shares and GDP PC Selected Countries
Country
Brazil
China
Germany
India
Japan
Korea, Rep.
Mexico
Philippines
Poland
Saudi Arabia
South Africa
Ukraine
United States
Share World
Share World
US=100 PCGDP US=100 PCGDP
GDP ICP2005
GDP Country
EKS Regional
2.880
9.701
4.574
4.258
7.040
1.869
2.137
0.455
0.942
0.892
0.723
0.478
22.512
2.731
10.264
4.480
4.505
6.894
1.830
2.093
0.481
0.923
0.912
0.691
0.528
22.046
20.6
9.8
73.2
5.1
72.7
51.2
27.2
7.0
32.6
50.9
20.3
13.4
100.0
EKS Country
21.4
11.2
78.7
5.7
75.9
53.8
29.7
8.0
36.2
55.0
20.7
11.8
100.0