Using the big mac index for comparing construction costs internationally

Craig Langston*, Rick Best

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

6 Citations (Scopus)

Abstract

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.

Original languageEnglish
Title of host publicationQueensland University of Technology Research Week International Conference, QUT Research Week 2005 - Conference Proceedings
EditorsA.C. Sidwell
Publication statusPublished - 2005
Externally publishedYes
EventQueensland University of Technology Research Week International Conference, QUT Research Week 2005 - Brisbane, QLD, Australia
Duration: 4 Jul 20058 Jul 2005

Conference

ConferenceQueensland University of Technology Research Week International Conference, QUT Research Week 2005
CountryAustralia
CityBrisbane, QLD
Period4/07/058/07/05

    Fingerprint

Cite this

Langston, C., & Best, R. (2005). Using the big mac index for comparing construction costs internationally. In A. C. Sidwell (Ed.), Queensland University of Technology Research Week International Conference, QUT Research Week 2005 - Conference Proceedings