Purchasing power parities for consumption and household income across the Canadian provinces and territories / by Brandon Landry, Ryan Macdonald, Peter Tarassoff and Jenny Watt.: CS11-633/2025-58E-PDF

"Regional economic disparities have been increasing in many high-income countries, leading to increased interest in the measurement of economic differences between regions. This paper develops regional purchasing power parities (PPPs) for Canada, which can be used to adjust for price levels while making interregional comparisons. Then, it uses these PPPs to create two price-adjusted measures of household disposable income per capita, analyzing differences in real income across the provinces and territories. Differences between the non-price-adjusted measures and the price-adjusted measures suggest that price adjustment is necessary to create an accurate picture of purchasing power across regions. For example, while Alberta has some of the highest price levels in the country, the province ranks highly in terms of PPP-adjusted household per capita, indicating that nominal income is high enough to compensate for high price levels. In contrast, British Columbia and Ontario fall in the rankings after PPP adjustment, indicating that nominal income is not high enough to compensate for high price levels in these provinces"--Abstract, page 5.

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