Inklaar, Robert; Timmer, Marcel P. - In: Review of Income and Wealth 60 (2014) 4, pp. 727-746
type="main" <p>Prices of GDP relative to the exchange rate increase with income per capita, which is known as the Penn-effect. This is generally attributed to services being cheaper relative to goods in poorer countries. In this paper we re-examine the Penn-effect based on a new set of PPPs for...</p>