Some changes in the LIS PPPs: A brief look at the methodology and income rankings for selected regions in the LIS database
Gintare Mazeikaite (LIS)
One common solution in cross-national studies comparing living standards and well-being is to use purchasing power parity (PPP) rates. In May 2020, new PPP rates that convert local currency units into 2017 US PPP dollars were released in the World Development Indicators. In this article, we raise the following question: How are the LIS figures affected by the choice of the PPP benchmark year? To answer this question, Gintare prepared various figures analysing the difference between the 2011 and 2017 PPPs.
Full article is available here.