I'm a graduate student in population & public health but I have an high school/'undergraduate level' economics question for you folks!
I am looking to convert dollar values from various countries & currencies into USD to a common year (for example: 2013). What I have is a bunch of cost of illness estimates for a single disease that were done on a national level for various countries over the course of about 20 years (mainly the US and the UK).
As an example:
$ 1000 USD (2009) in USA
£ 1000 sterling (2008) in UK
I want to convert the sterling (UK) value into $ USD in 2013. Converting the dollar-figure estimated in USD to 2013 values is fairly easy from what I understand (I can use an online calculator or look up CPI inflation values manually)... but I am a little confused on how to do the dollar-values from other countries.
[Inflate first-convert second]
- Use country-specific CPI values (say UK CPI values, or their equivalents) to inflate 2008 £ figure to 2013 £ and THEN convert to USD using a 'current' conversion factor?
[Convert first-inflate second]
- Convert the 2008 £ figure to 2008 USD and then use US CPI value to bring up to 2013 USD value?
Thanks so much for the help!