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EU KLEMS Project

Workpackage 4: Relative Price Levels (24 months)


  • Provide the quantitative inputs for the EU KLEMS Productivity Database on a country-by-country basis with respect to relative price measure of output, intermediate inputs, labour costs, investment prices and capital user cost and R&D at industry level.
  • Carry out methodological research related to measurement of relative prices.

    Description of work
    Obtain measures of output (basic price) and input (purchaser price) purchasing power parities.

    Obtain measures of wage levels by gender, age (3-4 categories), and level of educational attainment (3 or more categories).

    Obtain expenditure PPPs for seven asset categories (IT equipment, communication equipment, other machinery, transport equipment, software, non-res. structures, dwellings) and adjustment for user cost differences across countries.

    Sources PPP measures are ICOP database, PRODCOM, mixed with expenditure PPPs from Eurostat/OECD ICP (corrected for margins) and I/O tables; for wages EU Earnings Survey and Luxembourg Income Study.

    Methodological research may focus on topics including multilateralisation of PPP measures; consistency between price indices and PPPs; quality issues for international comparisons (in particular durable and investment goods); and relationship between output and input PPPs of similar items. Determination of the definitive research agenda depends on key priorities emerging from data construction (during months 2 and 9).

    Primary Contact
    Marcel Timmer, University of Groningen

    EU KLEMS WP4 background papers

  • Timmer, Marcel P. and Gerard Ypma (2006), Productivity Levels in Distributive Trades: A New ICOP Dataset for OECD Countries, Groningen Growth and Development Centre Working Paper GD-83
  • Timmer and van Ark (2005), Industry-of-Origin Prices and PPPs: A New Dataset for International Comparisons, RUG

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    This project is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

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    Last changed on: 26 July 2006