diff --git a/pkgconfig/CMakeLists.txt b/pkgconfig/CMakeLists.txt
index db8b65902..b1224a01d 100644
--- a/pkgconfig/CMakeLists.txt
+++ b/pkgconfig/CMakeLists.txt
@@ -42,8 +42,9 @@ ENDIF( cppad_has_ipopt )
 # cppad_pkgconfig_cflags
 # cppad_pkgconfig_cflags_uninstalled
 #
-SET(cppad_pkgconfig_cflags             "-I${cppad_abs_includedir}" )
-SET(cppad_pkgconfig_cflags_uninstalled "-I${cppad_SOURCE_DIR}"     )
+SET(cppad_pkgconfig_includedir          "${cmake_install_includedirs}" )
+SET(cppad_pkgconfig_cflags_uninstalled  "-I${cppad_SOURCE_DIR}"        )
+SET(cppad_pkgconfig_libdir              "${cmake_install_libdirs}"     )
 # ----------------------------------------------------------------------------
 # cppad_pkgconfig_libs
 # cppad_pkgconfig_libs_uninstalled
@@ -74,7 +75,7 @@ IF( "${libs}" STREQUAL "" )
     SET(cppad_pkgconfig_libs             "")
     SET(cppad_pkgconfig_libs_uninstalled "")
 ELSE( "${libs}" STREQUAL "" )
-    SET(cppad_pkgconfig_libs             "-L${cppad_abs_libdir} ${libs}")
+    SET(cppad_pkgconfig_libs             "-L\${libdir} ${libs}")
     SET(cppad_pkgconfig_libs_uninstalled "${uninstalled} ${libs}")
 ENDIF( "${libs}" STREQUAL "" )
 #
@@ -84,10 +85,12 @@ ENDIF( "${libs}" STREQUAL "" )
 CONFIGURE_FILE(
     ${CMAKE_CURRENT_SOURCE_DIR}/cppad.pc.in
     ${CMAKE_CURRENT_BINARY_DIR}/cppad.pc
+    @ONLY
 )
 CONFIGURE_FILE(
     ${CMAKE_CURRENT_SOURCE_DIR}/cppad-uninstalled.pc.in
     ${CMAKE_CURRENT_BINARY_DIR}/cppad-uninstalled.pc
+    @ONLY
 )
 # During install copy cppad.pc to datadir and libdir
 INSTALL(FILES ${CMAKE_CURRENT_BINARY_DIR}/cppad.pc
diff --git a/pkgconfig/cppad.pc.in b/pkgconfig/cppad.pc.in
index a202e3fb3..1c34c1e08 100644
--- a/pkgconfig/cppad.pc.in
+++ b/pkgconfig/cppad.pc.in
@@ -12,12 +12,19 @@
 # This file is used with pkg-config to include CppAD after it is installed
 #
 # Entries set by top source directory CMakeLists.txt file
+
+prefix=${pcfiledir}/../..
+exec_prefix=${prefix}
+libdir=${exec_prefix}/@cppad_pkgconfig_libdir@
+includedir=${prefix}/@cppad_pkgconfig_includedir@
+
 Name:         cppad
 Description:  @cppad_description@
 Version:      @cppad_version@
 URL:          @cppad_url@
+
 #
 # Entries set by pkgconfig/CMakeLists.txt file
-Cflags:       @cppad_pkgconfig_cflags@
+Cflags:       -I${includedir}
 Libs:         @cppad_pkgconfig_libs@
 Requires:     @cppad_pkgconfig_requires@