Estimating Purchasing Power Parity Converters for International Comaparisons across Asian Countries: Prewar Case

Hironobu Nakagawa


1. Introduction

1.1 PPP converters for international comparisons
1.2 PPPs for Asian countries: the prewar case

2. Methodological Issues

3. A Solution to the Limited Data Acailability Problem

3.1 The use of the minimum spanning tree method
3.2 Wage as a proxy for the price of services
3.2.1 Price of services as a determinant of international price differentials
3.2.2 Theoretical background to explain the link between wage and price of services
3.3 An experiment using recent data
3.3.1 Wage data
3.3.2 Results

4. An Application to the Prewar Asian Case

4.1 Our spanning tree
4.2 Data
4.3 Results

5. Concluding Remarks