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Definition: Paasche - Laspeyres spread
Category: Purchasing power parities
The ratio of the Paasche type index to the Laspeyres type index in a binary comparison. Usually the Paasche index is lower than the Laspeyres index. In other words, the Paasche – Laspeyres spread should be less than one (2012 Methodological manual on purchasing power parities). The ratio of an index using the weights of the partner country to an index using the weights of the base country in a binary comparison. The ratio of the Paasche type index to the Laspeyres type index in a binary comparison (2005 Methodological manual on purchasing power parities). 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
Source:
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012
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