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  • Articles and reports: 13-604-M2019002
    Description:

    The aim of this article is two-fold: first, to discuss concepts and methods of estimating Canada-U.S. purchasing power parity (PPP); and second, to present key estimates. The estimates incorporate the 2017 benchmark prices from the Organisation for Economic Cooperation and Development (OECD) PPP Program and corresponding national income data from the Canadian System of National Accounts. Furthermore, U.S. data were obtained from the Bureau of Economic Analysis (BEA) and the U.S. Census Bureau.

    Release date: 2019-04-26

  • Articles and reports: 11-626-X2016065
    Description:

    The U.S.–Canada purchasing power parity (PPP) is a measure of the relative price level between Canada and the United States. It measures the difference, in dollars, that exists between the two countries for an individual or firm wishing to purchase an equivalent basket of goods and services in each country. This Economic Insights article presents quarterly estimates from Statistics Canada for the U.S.–Canada purchasing power parity. It is part of a series of research papers and articles that examine differences in price levels between Canada and the United States.

    Release date: 2016-12-22

  • Stats in brief: 13-604-M2010064
    Description:

    This paper provides the latest annual results for the U.S./Canada purchasing power parities (PPPs) and real expenditure indexes in the U.S. compared with Canada for the period 2002 to 2009. Revisions to previously published data and an update using the most recent US and Canada expenditure data from the National Accounts and in-depth price comparisons for 2005 are incorporated. The paper provides a primer on purchasing power parities and related measures and why they are important in international comparisons of economic performance. It also describes a new projection methodology for total economy measures that are now based on Gross Domestic Income and shows the impact of this change on the data.

    Release date: 2011-01-28

  • Articles and reports: 11-624-M2010025
    Geography: Canada
    Description:

    This paper examines the different types of deflators that are used to compare volume estimates of national income and production across countries. It argues that these deflators need to be tailored to the specific income concept used for study. If the potential to spend concept is employed, a purchasing power deflator is needed. If a production based concept is used, a producing power deflator is necessary. The paper argues that present practice produces a hybrid deflator that fails both purposes when terms of trade shifts are large and offers a solution.

    Release date: 2010-01-12

  • Articles and reports: 11-010-X200901211053
    Geography: Canada
    Description:

    This paper re-examines Canadian real GDI relative to the US converted with purchasing power parities based on what production can purchase rather than conventional measures based on production, which narrows the shortfall of Canada's relative income per capita from 15% in 2002 to 8% in 2008.

    Release date: 2009-12-10

  • Articles and reports: 11F0027M2009058
    Geography: Canada
    Description:

    This paper examines the different types of deflators that are used to compare volume estimates of national income and production across countries. It argues that these deflators need to be tailored to the specific income concept used for study. If the potential to spend concept is employed, a purchasing power deflator is needed. If a production based concept is used, a producing power deflator is necessary. The paper argues that present practice produces a hybrid deflator that fails both purposes when terms of trade shifts are large and offers a solution.

    Release date: 2009-12-10

  • Articles and reports: 13-604-M1993025
    Description:

    This article introduces two new tables showing volume indexes of real gross domestic product (GDP) per capita and its components for Canada compared with the United States and the associated purchasing power parities (PPPs). These international comparisons of real expenditures based on PPPs are considered to be a major addition to the tools available for macroeconomic analysis. For example, the recent publication by the International Monetary Fund (IMF) of a set of estimates of different countries' output using PPPs has changed the view of the share of world output that comes from the industrialized countries compared with the developing economies.

    An analysis based on PPPs, rather than a more conventional one based on exchange rates, has significantly changed the relative measures of output of countries. Comparisons based on exchange rates are unlikely to fully take into account the differences in price levels between countries (i.e., the goods and services that can be purchased in one country's currency compared with another's). Moreover, services are not generally traded in the way that goods are, so their prices in different countries tend not to be related in a way that parallels the currency exchange rate. If aggregate output is to be properly compared across countries, PPPs become more and more important as the size of the service sector grows.

    Economic theory would suggest that for internationally traded domestically produced goods and services, PPPs and exchange rates will tend to equalize in the long run. Exchange rates, however, can fluctuate widely in short periods and are affected by expectations and factors such as deficits, wars, fuel shortages and interest rates. With the calculation of PPPs, actual price level differences can be identified. Such measures are also much more stable over time.

    Release date: 1993-11-30
Reference (2)

Reference (2) ((2 results))

  • Notices and consultations: 13-605-X
    Description: This product contains articles related to the latest methodological, conceptual developments in the Canadian System of Macroeconomic Accounts as well as the analysis of the Canadian economy. It includes articles detailing new methods, concepts and statistical techniques used to compile the Canadian System of Macroeconomic Accounts. It also includes information related to new or expanded data products, provides updates and supplements to information found in various guides and analytical articles touching upon a broad range of topics related to the Canadian economy.
    Release date: 2024-11-12

  • Surveys and statistical programs – Documentation: 13-605-X200900211057
    Description:

    With the latest release of the bilateral Purchasing Power Parities estimates for Canada and the U.S., an improved projection methodology for the non-benchmark year has been employed. This note summarizes the new methodology and its rationale.

    Release date: 2009-12-10
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