The relative price of services

Onderzoeksoutput: Working paperAcademic

612 Downloads (Pure)

Samenvatting

Relative GDP prices increase with rising income per capita, which is generally attributed to services being cheaper in poorer countries. In this paper we re-examine this based on a new set of PPPs for industry output. These are estimated in an augmented Geary-Khamis approach using prices for final goods, exports and imports. The resulting multilateral PPPs cover 35 industries in 42 countries for the year 2005. We find that the rising relative GDP prices are entirely due to the rapid rise in the output prices of non-market services. This seems related to that sector’s high labour intensity.
Originele taal-2English
Plaats van productieGroningen
UitgeverGGDC
Aantal pagina's25
VolumeGD-124
StatusPublished - 2012

Publicatie series

NaamGGDC Working Papers
UitgeverijGGDC
VolumeGD-124

Citeer dit