REGIONAL LINKING ICP 2005 ROUND. Past Practice: Bridge Countries Disadvantage: Reliance on single links.

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Presentation transcript:

REGIONAL LINKING ICP 2005 ROUND

Past Practice: Bridge Countries Disadvantage: Reliance on single links

Ring Region

Principles of Ring Linking 1. Ring product list is created (because Regional lists have limited overlap); 2. Regional fixity is retained at BH level; 3. Regional BH parities are produced with CPRD; 4. Ring Region is used for linking only [with a CPRD- style index].

Ring linking: an example

FIXITY Item level BH level GDP level All aggregates

Fixity at the GDP level (OECD) Version 1. Running full global BH matrix, with each OECD country as a separate entity, then the OECD total is redistributed on the basis of the regional OECD comparison. Version 2. Creating an OECD country to be included in the global comparison, then the OECD countrys GDP is redistributed on the basis of the regional OECD comparison.

Questions?