This paper explores the use of purchasing power parity (PPP) in the comparison of construction costs between different countries, and whether the development of construction-specific indices will improve reliability. The approach adopted is to compare the construction cost of a typical five star international hotel per square metre in each of ten major cities using a range of PPP methods and to comment on their variability. In particular, this paper looks at whether an index based on the price of a McDonalds Big Mac 3 hamburger is a viable alternative when compared against the mainstream methods. The recent publication of construction-specific indices as part of the Eurostat-OECD joint PPP program is also compared against generic indices and the discrepancy is calculated. The paper concludes with reflections about which approach is preferable when attempting to assess global construction relativities and what further research is needed.
|Title of host publication
|Queensland University of Technology Research Week International Conference, QUT Research Week 2005 - Conference Proceedings
|Published - 2005
|Queensland University of Technology Research Week International Conference, QUT Research Week 2005 - Brisbane, QLD, Australia
Duration: 4 Jul 2005 → 8 Jul 2005
|Queensland University of Technology Research Week International Conference, QUT Research Week 2005
|4/07/05 → 8/07/05