Research Article

A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita

Volume: 41 Number: 1 March 6, 2026
TR EN

A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita

Abstract

This study presents a new approach to eliminate the large gap between GDP per capita calculated according to purchasing power parity and GDP per capita calculated by other methods. With this approach, inflation and exchange rate-driven changes in the purchasing power of countries are taken into account, and thus, the purchasing power losses in countries can be tracked through GDP per capita. In this way, the calculation based on purchasing power parity is discounted, and the potential differences between the real GDP per capita and the GDP per capita calculated according to PPP are reduced.

Keywords

References

  1. Ahn, J., Mano, R.C. & Zhou, J. (2020), Real Exchange Rate and External Balance: How Important Are Price Deflators?. Journal of Money, Credit and Banking, 52: 2111-2130. https://doi.org/10.1111/jmcb.12746
  2. Antal, M., & van den Bergh, J. (2014). Evaluating alternatives to GDP as measures of social welfare/progress. European Commission European Research Area. Retrieved March, 20, 2020.
  3. Ardeni, P. G. (1989). Does the Law of One Price Really Hold for Commodity Prices? American Journal of Agricultural Economics, 71(3), 661-669.
  4. Armiento, M. (2018). The sustainable welfare index: towards a threshold effect for Italy. Ecological Economics, 152, 296-309.
  5. Cassel, G. (1921). The world's money problems. New York: E.P. Dutton and Co.
  6. Cassel, G. (1922). Money and foreign exchange after 1914. New York: MacMillan.
  7. Chai, T., & Draxler, R. R. (2014). Root mean square error (RMSE) or mean absolute error (MAE)? – Arguments against avoiding RMSE in the literature. Geoscientific model development, 7(3), 1247-1250. https://doi.org/10.5194/gmd-7-1247-2014.
  8. Cook, D., & Davíðsdóttir, B. (2021). An appraisal of interlinkages between macro-economic indicators of economic well-being and the sustainable development goals. Ecological Economics, 184, 106996.

Details

Primary Language

English

Subjects

Macroeconomic Theory

Journal Section

Research Article

Publication Date

March 6, 2026

Submission Date

January 21, 2025

Acceptance Date

August 25, 2025

Published in Issue

Year 2026 Volume: 41 Number: 1

APA
Gerede, C. (2026). A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita. İzmir İktisat Dergisi, 41(1), 230-263. https://doi.org/10.24988/ije.1624210
AMA
1.Gerede C. A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita. İzmir İktisat Dergisi. 2026;41(1):230-263. doi:10.24988/ije.1624210
Chicago
Gerede, Cemaleddin. 2026. “A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita”. İzmir İktisat Dergisi 41 (1): 230-63. https://doi.org/10.24988/ije.1624210.
EndNote
Gerede C (March 1, 2026) A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita. İzmir İktisat Dergisi 41 1 230–263.
IEEE
[1]C. Gerede, “A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita”, İzmir İktisat Dergisi, vol. 41, no. 1, pp. 230–263, Mar. 2026, doi: 10.24988/ije.1624210.
ISNAD
Gerede, Cemaleddin. “A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita”. İzmir İktisat Dergisi 41/1 (March 1, 2026): 230-263. https://doi.org/10.24988/ije.1624210.
JAMA
1.Gerede C. A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita. İzmir İktisat Dergisi. 2026;41:230–263.
MLA
Gerede, Cemaleddin. “A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita”. İzmir İktisat Dergisi, vol. 41, no. 1, Mar. 2026, pp. 230-63, doi:10.24988/ije.1624210.
Vancouver
1.Cemaleddin Gerede. A New Approach to Purchasing Power: Discounted Gross Domestic Product Per Capita. İzmir İktisat Dergisi. 2026 Mar. 1;41(1):230-63. doi:10.24988/ije.1624210
İzmir Journal of Economics
is indexed and abstracted by
TR-DİZİN, DOAJ, EBSCO, ERIH PLUS, Index Copernicus, Ulrich’s Periodicals Directory, EconLit, Harvard Hollis, Google Scholar, OAJI, SOBIAD, CiteFactor, OJOP, Araştırmax, WordCat, OpenAIRE, Base, IAD, Academindex

Dokuz Eylul University Publishing House Web Page
https://kutuphane.deu.edu.tr/yayinevi/

Journal Contact Details Page
https://dergipark.org.tr/en/pub/ije/contacts