Insights on the Canadian Economy Research Paper Series The Insights on the Canadian Economy Research Paper Series provides for the circulation of research conducted by the staff of National Accounts and Analytical Studies, visiting Fellows and academic associates. [...] The level of uncertainty will depend on several factors: the nature of the functional form used in the multivariate analysis; the type of econometric technique employed; the appropriateness of the statistical assumptions embedded in the model or technique; the comprehensiveness of the variables included in the analysis; and the accuracy of the data that are utilized. [...] In its simplest form, a PPP is the ratio of the price of a good or service in one country in its national currency relative to the price of the same item in another country expressed in its currency. [...] A new and different conversion rate is needed for cross-country comparisons of income for the same reasons that a different deflator is used for the creation of the volume of GDI and GDP within a country. [...] We project the benchmark forward and back using the ratio of the implicit GDP deflators for Canada and the US.