Comparing Price Levels across Countries Using Minimum-Spanning Trees

A-Tier
Journal: Review of Economics and Statistics
Year: 1999
Volume: 81
Issue: 1
Pages: 135-142

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is shown how a comparison of price levels across a group of countries can be made by chaining bilateral price indexes across a spanning tree. It is argued that we should use the spanning tree whose resulting multilateral price indexes are least sensitive to the choice of bilateral formula. This minimum-spanning tree can be easily computed using Kruskal's algorithm. Results obtained by chaining Fisher indexes across a minimum-spanning tree are compared with the Penn World Table. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Technical Details

RePEc Handle
repec:tpr:restat:v:81:y:1999:i:1:p:135-142
Journal Field
General
Author Count
1
Added to Database
2026-02-02