The Penn effect is the economic finding that commodity prices are higher in countries with higher income. This is often interpreted to mean that real income ratios between high and low income countries are misrepresented by gross domestic product (GDP) conversion at market exchange rates.
The Penn effect is the economic finding that commodity prices are higher in countries with higher income. This is often interpreted to mean that real income ratios between high and low income countries are misrepresented by gross domestic product (GDP) conversion at market exchange rates.
Source: Wikipedia "Penn effect" · CC BY-SA 4.0
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