Wednesday, June 19, 2024

Mapping the Big Map Index

a world map with countries colored by the cost of a Big Mac
The Economist's Big Mac Index compares the purchasing power parity between the currencies of different countries by examining the price of a Big Mac hamburger sold at McDonalds' restaurants in each country. The Index "is based on the theory of purchasing-power parity, the notion that in the long run exchange rates should move towards the rate that would equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries". 

It can also be used to find out the price of a Big Mac in countries around the world. For some reason, however, The Economist has decided not to map the Big Mac Index. A burger shaped hole which has now been filled by Burgernomics. 

The Burgernomics interactive map shows the price of a Big Mac in countries around the world in US dollars and in the local currency. It also provides data on how much a Big Mac should cost in each country based on the exchange rate and therefore whether the value of a Big Mac is currently over- or undervalued in each country.

The cost of a Big Mac in countries around the world is also tracked by Statista's Big Mac Index.

The cost of a Big Mac can differ at different locations within the same country. The McCheapest Map by Pantry & Larder tracks and maps the cost of a Big Mac at every McDonalds in the United States. On this map every McDonalds outlet is represented by a dot which is colored to show the cost of a Big Mac (green=cheaper and red=more expensive). 

The McCheapest Map can therefore be used to explore the purchasing power parity of the dollar in different areas of the United States. It can also show you where in the States you can buy the cheapest Big Mac. You can compare the prices in other popular fast food outlets on the Fast Food Index map. The Fast Food Index maps the differences in the prices of fast food across the United States. The map allows you to compare the prices charged by MacDonald's, Chick-Fil-A, Taco Bell and Chipotle across the whole of the US (data from 2022).

No comments: