The second column calculates Big Mac PPPs by dividing the local currency price by the American price. For instance, in Japan Big Mac costs¥22. Dividing this by the American price of$2.90 produces a dollar PPP against the yen of Y90, compared with its current rate of Y113, suggesting
General GMM formula Let y, be an h-vector of variables that are observed at date t, let denote an unknown vector of coefficients, h(e, y,) Be an r-vector real function. Let denote true value of 0, and suppose this true value is