Comparing Costs of Living across World Cities

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 repor...

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Main Authors:	Nakamura, Shohei, Harati, Rawaa, Lall, Somik V., Dikhanov, Yuri M., Hamadeh, Nada, Oliver, William Vigil, Rissanen, Marko Olavi, Yamanaka, Mizuki
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2021
Subjects:	PURCHASING POWER PARITY PRICE URBANIZATION INTERNATIONAL COMPARISON PROGRAM ECONOMIC GROWTH
Online Access:	http://hdl.handle.net/10986/36152

id	okr-10986-36152
recordtype	oai_dc
spelling	okr-10986-361522021-08-18T05:10:39Z Comparing Costs of Living across World Cities Nakamura, Shohei Harati, Rawaa Lall, Somik V. Dikhanov, Yuri M. Hamadeh, Nada Oliver, William Vigil Rissanen, Marko Olavi Yamanaka, Mizuki PURCHASING POWER PARITY PRICE URBANIZATION INTERNATIONAL COMPARISON PROGRAM ECONOMIC GROWTH 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. 2021-08-17T18:47:33Z 2021-08-17T18:47:33Z 2020-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/36152 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	PURCHASING POWER PARITY PRICE URBANIZATION INTERNATIONAL COMPARISON PROGRAM ECONOMIC GROWTH
spellingShingle	PURCHASING POWER PARITY PRICE URBANIZATION INTERNATIONAL COMPARISON PROGRAM ECONOMIC GROWTH Nakamura, Shohei Harati, Rawaa Lall, Somik V. Dikhanov, Yuri M. Hamadeh, Nada Oliver, William Vigil Rissanen, Marko Olavi Yamanaka, Mizuki Comparing Costs of Living across World Cities
geographic_facet	Africa Sub-Saharan Africa
description	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.
format	Journal Article
author	Nakamura, Shohei Harati, Rawaa Lall, Somik V. Dikhanov, Yuri M. Hamadeh, Nada Oliver, William Vigil Rissanen, Marko Olavi Yamanaka, Mizuki
author_facet	Nakamura, Shohei Harati, Rawaa Lall, Somik V. Dikhanov, Yuri M. Hamadeh, Nada Oliver, William Vigil Rissanen, Marko Olavi Yamanaka, Mizuki
author_sort	Nakamura, Shohei
title	Comparing Costs of Living across World Cities
title_short	Comparing Costs of Living across World Cities
title_full	Comparing Costs of Living across World Cities
title_fullStr	Comparing Costs of Living across World Cities
title_full_unstemmed	Comparing Costs of Living across World Cities
title_sort	comparing costs of living across world cities
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2021
url	http://hdl.handle.net/10986/36152
_version_	1764484613264113664

Comparing Costs of Living across World Cities

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