1. The measure of GDP per capita in purchasing power standards A statistical indicator tricky to interpret Francois Magnien, INSEE, France OECD National Accounts Meeting October 2002. Paris

2. 1. PPP calculations are not coherent with national accounts 1.1 A fundamental inconsistency in the measurement of real growth… 1.2 … stemming from differing estimates of price levels in national accounts and PPP calculations

3. Table 1: real GDP per capita growth relative to the European average 1992-1999 (% over the seven-year period)

4. Table 2: National price trends relative to the European average between 1992 and 1999 : comparison of Eurostat and national accounts measures (in %)

5. 2. Measuring construction prices: an example that illustrates the difficulties that the ICP must overcome 2.1 Comparison of construction prices: a complex method… 2.2 … which leaves too large a margin of uncertainty surrounding the price level 2.3The prices supplied by national experts are often amazing 2.4Insufficiently representative sampling

6. 3. The revision of PPPs: an opportunity to restore credibility to the ICP which should not be missed 3.1 Two objectives -- but one priority: to correct price levels 3.2 It is essential to reconcile PPP-based figures with national account figures 3.3 “Cross-sectional” comparison of basic price data 3.4 Correcting prices -- a politically sensitive exercise