Postage Price Parity*


  • *

    The author acknowledges the assistance and contributions of Professor Ken Clements (The University of Western Australia) towards this paper.

Maxwell N. Maesepp, M251, Business School, The University of Western Australia, 35 Stirling Highway, Crawley, WA 6009, Australia. Email:


A large part of international economics research is devoted to the theory of Purchasing Power Parity (PPP). There have been numerous attempts by economists over the years to devise an accurate, reliable and convenient measure for this theory – the most famous of these being the “Big Mac index” compiled by The Economist. In the spirit of the “Big Mac index”, this paper introduces another alternative measure of PPP here, using the prices of postage stamps for international mail delivery, that is just as, if not more, attractive as any other current measure.