Comments by "seneca983" (@seneca983) on "Why France’s Economy is Doing Better Than it Looks" video.

I don't think that's correct. AFAIK, the consumer price indices in different countries do take into account the different consumption baskets in those countries.
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@thomasdalton1508 I don't see why there should be an adjustment for such "value". If you buy a car even if you don't strictly need it, it's still an expenditure and how much it costs still affects you. Of course, you might skip buying a car entirely if you don't need it but if a smaller percentage of income is spent on cars, that is taken into account in the basket of goods for the consumer price index.
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@aurelspecker6740 If in country B a smaller percentage of consumer spending is on cars, then car prices affect that country's consumer price index less.
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@thomasdalton1508 I don't think I'm confusing them. A PPP adjustment still requires some kind of price index. I don't know if they use specifically CPI or some other index but some kind of index is needed. If the two countries use indices with a different composition for the goods baskets, some kind of average can be taken.
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@aurelspecker6740 At least some price indices do include "hedonistic adjustment" for changing quality but I'm not sure if that's included in PPP comparisons.
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