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Convert to purchasing-power-parity terms

Source: R/rates.R
to_ppp.Rd

Market exchange rates do not equalise what money buys. to_ppp() divides a local-currency series by the PPP conversion factor, putting every country on comparable international dollars – the correction that makes a cross-country level comparison meaningful.

Usage

to_ppp(data, value, factor = NULL, suffix = "_ppp")

Arguments

data

A panel with iso3c, year and the value column.

value

The local-currency value column (unquoted).

factor

Either a column holding the PPP conversion factor (unquoted), or NULL to fetch the World Bank's (PA.NUS.PPP). Fetching needs the network.

suffix

Suffix for the new column (default "_ppp").

Value

data with the PPP-converted column added.

See also

deflate(), per_capita()

Examples

d <- data.frame(iso3c = c("IND", "USA"), year = 2020L,
                gdp_lcu = c(1e5, 1e4), ppp = c(21.9, 1))
to_ppp(d, gdp_lcu, factor = ppp)
#> # A tibble: 2 × 5
#>   iso3c  year gdp_lcu   ppp gdp_lcu_ppp
#>   <chr> <int>   <dbl> <dbl>       <dbl>
#> 1 IND    2020  100000  21.9       4566.
#> 2 USA    2020   10000   1        10000