Definition: Intra-country validation

Purchasing power parities

The validation that precedes inter-country validation. It is undertaken by participating countries prior to submitting their survey prices to Eurostat or the OECD. Each country edits and verifies its own prices without reference to the price data of other countries. Validation is carried out at the product level. The objective is to establish that price collectors within the country have priced items that match the product specifications and that the prices they have reported are accurate. This entails the country searching for outliers first among the individual prices that have been collected for each product it has chosen to survey and then among the average prices for these products. Subsequently, the country verifies the outliers found to ascertain whether or the not they are valid observations. If they are not, the country either corrects or suppresses them.
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012

Search box