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The Use and Abuse of Parities in Comparisons of Specific Volumes" Some Case Studies.pdf
JournalofUS—ChinaPublicAdm inistration,ISSN 1548—6591
January2011,Vol8,No.1,97—103
毋 Ll嚣 H lN往
TheUseandAbuseofParitiesinComparisonsofSpecific
Volumes:SoommeeCaasseeSttuudlieess
DonaldRoy
Independentresearcher,GreatBritain
Databasedoninternationalpricecomparisonshaveplayedandcontinuetoplayaroleinpolicydebatesinsome
countries,mostnotablytheUnitedKingdom Thequalityandsophisticationofapproacheshavevariedovertimeand
betweensectors.ThepapercomparestheusemadeofICP(InternationalComparisonProgramme)IandICPIIresults
agenerationagowithmorerecentapproaches.Itmakessuggestionsastohow applicationscanbeimprovedinfuture.
Ke),words.internationalpricecomparisons,ICP,policydebates,UnitedKingdom
CaseOne:HealthCareCostsandVolumesinthe1970s
Thewriterwastold someyearsagobythepersonwhohadbeenchiefeconomistattheDepartmentof
HealthandSocialSecuritythatastudyofcomparativecostsandvolumeshadbeenundertakenafterthechange
ofgovernmentinMay 1979.ThestudyhadincludedFrance,Germany andtheUnitedStates.Thewriter’s
impressionwasandisthatthestudyhadreliedonthespecificdataonvolumeandcostspublishedin 1978
(Kravis,Heston, Summers,1978)(thisissupportedbythefactthatthesameperson,afterretirement,used
datafromthesamesourceforadifferentstudy(Roy,1982),whichcontainedawiderrangeofcountries,among
themBelgium,Italy,JapanandtheNetherlands).
ResearchundertakenbythewriterattheNationalArchivesatKew hasnotyetfoundtheoriginalstudy.
However,itappearspracticabletoreconstructitfromwhatisknownalreadyabouttheaccesstodataenjoyed
andthemethodologyemployedatthetime.
The 1978 ICP reportpresents expendituresper head in two ways:in nationalcu~ency and in
“internationaldollars”.Itshouldbenoted thatwhilenatio
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