On purchasing power parities calculation at the basic heading level

G. Ferrari & M. Riani
This paper analyses two procedures for calculating Purchasing Power Parities (ppps) at the basic heading level: the first one suggested by UNSO and the second one used by EUROSTAT For the synthesis of the prices of items, UNSO resorts to the "characteristicity" or "asterisk" approach and proposes the unweighted geometric mean of the ratios with at least one asterisk, whereas EUROSTAT transforms the above approach into that of "equi-characteristicity" and introduces pseudo Laspeyres and Paasche...