A comparative analysis of the price of a Big Mac menu and public transport fares in ten European capitals to assess the cost of urban mobility in relation to the cost of living.
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The data on the price of the Big Mac come from Global Product Prices, which monitors the global price of goods and services. The values, initially in dollars, have been converted into euros for a homogeneous comparison. Were selected from ten european capitals, one of which was detected in the rate of a simple run, and then computes the ratio of the price of the Big Mac.
The Big Mac Index it is an economic indicator, introduced in 1976 by The magazine The Economist with the objective of measuring the cost of living and purchasing power in different countries of the world. The index is based on the price of a menu Big Mac, a standardized product is sold globally by Mcdonald's, which allows the immediate comparison between the national economies. The idea behind the index is that, in an efficient market, the price of the Big Mac should be similar in all countries, taking into account the exchange rate and the cost of local goods and services.
In our study, we used the the cost of the menu Big Mac as a reference for comparing the price of the urban public transport in ten european capitals. The analysis focused on the relationship between the the price of the Big Mac and the rate of travel in local public transport. This comparison you can see how the cost of transportation to affect more than the cost of life expressed by the price of the menu Big Mac.
BMMI: Price single ticket ( € ) Price/ menu Big Mac (€)
This value indicates how much is public transport in relation to the cost of living.
Interpretation of the index
- If the index is low, the public transport is relatively cheap compared to the cost of living.
- If the index is high, the rate appears to be more costly compared to the consumer goods local.
Results
Note
The prices of the Big Mac, is initially expressed in US$, were converted into euros using the most recent exchange rate between the US dollar and the euro to ensure a homogeneous comparison between the different cities.
