A note on how to normalise the Geary-Khamis index of purchasing power parity

  • Utz-Peter ReichEmail author


The World Bank regularly publishes GDP-figures of its member countries, compiled at purchasing power parities. It employs the Geary-Khamis index for transforming the aggregates. That index consists of a system of homogeneous equations, which requires an additional non-homogeneous equation, to determine an appropriate unit of value measurement. This is the US-$, at present. The paper discusses that convention, points out its shortcomings, suggests an alternative existing, and adds an interpretation in terms of international economics.


Index numbers Geary-Khamis index Purchasing power parity International comparison 

JEL Classification

C43 C82 F19 


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.StarnbergGermany

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