scholarly journals Pricing-to-Market and the Failure of Absolute PPP

2011 ◽  
Vol 3 (1) ◽  
pp. 91-127 ◽  
Author(s):  
George Alessandria ◽  
Joseph P Kaboski
Keyword(s):  
Low Income ◽  
Purchasing Power Parity ◽  
Consumer Search ◽  
Low Income Countries ◽  
Power Parity ◽  
Pricing To Market ◽  
Export Prices ◽  
The Us ◽  
International Price ◽  
Use Studies

We show that deviations from the law of one price in tradable goods are an important source of violations of absolute purchasing power parity. Using highly disaggregated export data, we document systematic international price discrimination: at the US dock, low-income countries pay lower prices. This pricing-to-market is about twice as important as local nontraded inputs for differences in tradable prices. We propose a model of consumer search and pricing-to-market in which consumers in low-income countries have a comparative advantage in nontraded, nonmarket search activities. Evidence from cross-country time-use studies and US export prices supports the model. (JEL E31, F14)

scholarly journals Low-income countries are more immune to COVID-19: A misconception

2020 ◽  
Vol 72 ◽  
pp. 5-7 ◽  
Author(s):  
Soumya Roy
Keyword(s):  
Low Income ◽  
Purchasing Power Parity ◽  
Case Fatality ◽  
Low Income Countries ◽  
Medical Attention ◽  
Power Parity ◽  
Poor Countries ◽  
Financial Condition ◽  
The Usa ◽  
Great Force

Objective: The COVID-19 pandemic has hit countries such as Italy, Spain, France, UK, and the USA with great force, whereas the number of cases in countries such as India and most parts of Africa is comparatively lower. Such observation has made many people believe that the low-income countries may be more immune to COVID-19. Theories such as warm climate, weaker strain of the virus, and cross-protection by malaria have been popularly put forward. One such interesting theory is that since the general people of the low- income countries are mostly habituated to dwell in lesser hygienic condition and with lesser medical attention throughout their lifetime; hence, they have naturally acquired better immunity and more resilience against many infective diseases. Materials and Methods: We sought to investigate the above claim by comparing the case fatality rate (CFR) as well as number of cases per million population versus the gross domestic product at purchasing power parity per capita of different countries. Results: We found that while the number of cases showed a slight decline in the lower-income countries, the CFR was independent of the financial condition of the country. Conclusion: We conclude that the theory of better immunity in economically poor countries is a misconception. We suggest that people must come out of these misconceptions and resort to strict home isolation.

scholarly journals Comparing Costs of Living across World Cities

2019 ◽  
Vol 34 (Supplement_1) ◽  
pp. S79-S88
Author(s):  
Shohei Nakamura ◽  
Rawaa Harati ◽  
Somik V Lall ◽  
Yuri M Dikhanov ◽  
Nada Hamadeh ◽  
...  
Keyword(s):  
Low Income ◽  
Purchasing Power Parity ◽  
National Level ◽  
Low Income Countries ◽  
Power Parity ◽  
Cost Of Living ◽  
World Cities ◽  
Price Data ◽  
Price Levels ◽  
The Cost

Abstract This paper compares costs of living across world cities. The International Comparison Program (ICP) reports price levels across world economies in its calculation of purchasing power parity through an extensive scale of price data collection and rigorous methodology. While the price levels are reported only at the national level, some modification makes it possible to compare the cost of living across a group of world cities. In addition, various agencies report costs of living rankings for world cities on a regular basis, and some of them, such as the Economist Intelligence Unit (EIU)’s World Cost of Living Survey, systematically collect a wide variety of items from a host of cities, even covering low-income countries. This article's application of the ICP method to the EIU price data yields an overall reasonable result: richer cities have higher price levels, and the rankings of cities based on their price levels are similar when using the ICP and EIU data. Nevertheless, the results based on the EIU data differ from the ICP data relatively widely in some nonfood items and among cities with low price levels. This result highlights important issues regarding the data and methodology required to measure costs of living for development purposes.

Monetary Policy in Sub-Saharan Africa

2018 ◽  
Keyword(s):  
Monetary Policy ◽  
Low Income ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
African Countries ◽  
Policy Regimes ◽  
Export Prices ◽  
Policy Work ◽  
Sub Saharan ◽  
Policy Guidance

Having broadly stabilized inflation over the past two decades, many policymakers in sub-Saharan Africa are now asking more of their monetary policy frameworks. They are looking to avoid policy misalignments and respond appropriately to both domestic and external shocks, including swings in fiscal policy and spikes in food and export prices. In many cases they are finding current regimes—often characterized as ‘money targeting’—lacking, with opaque and sometimes inconsistent objectives, inadequate transmission of policy to the economy, and difficulties in responding to supply shocks. At the same time, little existing research on monetary policy is targeted to low-income countries. What do we know about the empirics of monetary transmission in low-income countries? (How) Does monetary policy work in countries characterized by a huge share of food in consumption, underdeveloped financial markets, and opaque policy regimes? (How) Can we use methods largely derived in advanced countries to answer these questions? And (how) can we use the results to guide policymakers? This book draws on years of research and practice at the IMF and in central banks from the region to shed empirical and theoretical light on these questions and to provide practical tools and policy guidance. A key feature of the book is the application of dynamic general equilibrium models, suitably adapted to reflect key features of low-income countries, for the analysis of monetary policy in sub-Saharan African countries.

scholarly journals Drug prices in Latin American countries: the case of rheumatoid arthritis Biosimilars

2021 ◽  
Vol 61 (1) ◽  
Author(s):  
Gabriela Bittencourt Gonzalez Mosegui ◽  
Fernando Antõnanzas ◽  
Cid Manso de Mello Vianna ◽  
Paula Rojas
Keyword(s):  
Rheumatoid Arthritis ◽  
United States ◽  
Latin American ◽  
United States Of America ◽  
Purchasing Power Parity ◽  
The United States ◽  
Power Parity ◽  
Drug Prices ◽  
The Us ◽  
Latin American Countries

Abstract Background The objective of this paper is to analyze the prices of biological drugs in the treatment of Rheumatoid Arthritis (RA) in three Latin American countries (Brazil, Colombia and Mexico), as well as in Spain and the United States of America (US), from the point of market entry of biosimilars. Methods We analyzed products authorized for commercialization in the last 20 years, in Brazil, Colombia, and Mexico, comparing them to the United States of America (USA) and Spain. For this analysis, we sought the prices and registries of drugs marketed between 1999 and October 1, 2019, in the regulatory agencies’ databases. The pricing between countries was based on purchasing power parity (PPP). Results The US authorized the commercialization of 13 distinct biologicals and four biosimilars in the period. Spain and Brazil marketed 14 biopharmaceuticals for RA, ten original, four biosimilars. Colombia and Mexico have authorized three biosimilars in addition to the ten biological ones. For biological drug prices, the US is the most expensive country. Spain’s price behavior seems intermediate when compared to the three LA countries. Brazil has the highest LA prices, followed by Mexico and Colombia, which has the lowest prices. Spain has the lowest values in PPP, compared to LA countries, while the US has the highest prices. Conclusion The economic effort that LA countries make to access these medicines is much higher than the US and Spain. The use of the PPP ensured a better understanding of the actual access to these inputs in the countries analyzed.

scholarly journals Exchange Rate Appreciation, International Competitiveness And Purchasing Power Parity: The Shiomi Company Of Japan

2016 ◽  
Vol 12 (3) ◽  
pp. 135-144
Author(s):  
John F. Boschen
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Financial Management ◽  
Nominal Exchange Rate ◽  
Purchasing Power ◽  
Power Parity ◽  
Consumer Prices ◽  
The Us ◽  
Cost Competitiveness ◽  
International Financial Management

In 2011 the ongoing appreciation in the yen against the US$ led Japanese firm Shiomi to consider relocating its production facilities outside of Japan. As a prelude to making this decision, Shiomi commissioned an evaluation of the historical impact of the yen’s appreciation on Japanese competitiveness. This evaluation is the basis for two important lessons in international financial management.  First, it is the real exchange rate, rather than the nominal exchange rate, that determines the relative cost competitiveness of countries. Second, in accordance with the rules of purchasing power parity, the historical evaluation showed that higher inflation in the U.S. relative to Japan caused the ratio of Japanese to U.S. prices to fall at roughly the same rate as the yen’s appreciation against the US$. Thus the long-term appreciation in the yen had little impact on Japanese competitiveness. Students are asked to assess the relocation decision in light of the post-case data on exchange rates and consumer prices supplied in the case. The case is appropriate for use in an international financial management or international economics course.

scholarly journals From printing to Scielo and Pubmed Central

2014 ◽  
pp. 5-6 ◽  
Author(s):  
Luis Eduardo Bravo
Keyword(s):  
Low Income ◽  
Low Income Countries ◽  
Multidisciplinary Teams ◽  
Free Access ◽  
Research Activity ◽  
Digital Repository ◽  
Pubmed Central ◽  
The Us ◽  
Academic Communication ◽  
The Impact

The first issue of Philosophical Transactions from the Royal Society published in 1665 is widely regarded as the beginning of modern academic communication through journal articles. This form of presentation was an alternative to books for facilitating the exchange of ideas among scholarly circles. Soon journal collections and scientific libraries were created and eventually an evaluation of the quality of research activity was sought through noting the impact of their publications1. With guidance from the National University of Colombia and support from Scielo Brazil, in 2013 the standards of the US-NLM were implemented and technical endorsement by Pubmed Central was attained. Colombia Médica´s retention over time is guaranteed by the US-NLM; as of 2014 it will become part of PubMed Central, the free digital archive of biomedical and biological sciences of the U.S. National Institute of Health, which is considered to be the most important digital library in the world. The guidance of the journals by multidisciplinary teams, the policy of free access to its contents, and the technological transfer with the use of free software will help the journals of middle and low-income countries to overcome barriers to diffusion and to maintain technological independence from commercial publishers. Colombia Médica makes an impassioned plea to WHO/PAHO to support BIREME, Brazil and convert SciELO into a certified digital repository.

International price comparisons of Alzheimer's drugs: a way to close the affordability gap

2009 ◽  
Vol 21 (6) ◽  
pp. 1116-1126 ◽  
Author(s):  
Guk-Hee Suh ◽  
Anders Wimo ◽  
Serge Gauthier ◽  
Daniel O'Connor ◽  
Manabu Ikeda ◽  
...  
Keyword(s):  
Purchasing Power Parity ◽  
The Philippines ◽  
High Income ◽  
Power Parity ◽  
Middle Income ◽  
Middle Income Countries ◽  
International Price ◽  
Differential Pricing ◽  
Price Comparisons ◽  
Low And Middle Income

ABSTRACTBackground: Alzheimer's drugs are believed to have limited availability and to be unaffordable in low- and middle-income countries compared to high-income countries. The price, availability and affordability of Alzheimer's drugs have not been reported before.Methods: During 2007 an international survey was conducted in 21 countries in six continents (Argentina, Australia, Brazil, the Dominican Republic, France, India, Japan, Macedonia, Mexico, New Zealand, Nigeria, the Philippines, Portugal, Serbia, South Korea, Switzerland, Taiwan, Thailand, Uganda, the U.K. and the U.S.A.). Prices of Alzheimer's drugs were compared using the affordability index (the total number of units purchasable with one's daily income) derived from purchasing power parity (PPP) converted prices as well as raw prices.Results: Donepezil is available in all 21 countries, whereas the newer drugs are less available. A 5 mg tablet of branded originator donepezil costs just US$0.26 in India and US$0.31 in Mexico, whereas it costs US$6.64 in the U.S.A. Pricing conditions of rivastigmine, galantamine and memantine appear to be similar to that of donepezil. The cheapest branded originators are from India and Mexico. However, in terms of PPP, Alzheimer's drugs in other low- and middle-income countries are much more expensive than in high-income countries. Most people in low- and middle-income countries cannot afford Alzheimer's drugs.Conclusions: Alzheimer's drugs, albeit available, are often unaffordable for those who need them most. It is hoped that equitable differential pricing will be applied to Alzheimer's drugs.

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