Definition: Indirect binary comparison

Category: Purchasing power parities

A price or volume comparison between two countries made through a third country. For example, in the case of countries A, B and C, the PPP (Purchasing power parity) between A and C is obtained by dividing the PPP between A and B by the PPP between C and B as follows: PPP A/C = PPP A/B / PPP C/B. http://ec.europa.eu/eurostat/product?code=KS-RA-12-023&mode=view Eurostat and Organization for Economic Cooperation and Development (OECD), "Eurostat - OECD Methodological manual on purchasing power parities (2005 Edition)", Methods and Nomenclatures, Office for Official Publications of the European Communities, Luxembourg, 2006European Union, Regulation (EC) No 1445/2007 establishing rules for the provision of basic information on PPPs, Official Journal of the European Union No L 336, 20.12.2007, p. 1 - 24