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Definition: Specification pricing

Purchasing power parities

The pricing methodology whereby a list of precisely-defined products is selected in consultation with the countries participating in the comparison with a view to having comparable products priced in each country. Products are fully defined in terms of all characteristics which influence their transaction prices. The objective is to price to constant quality in order to produce price relatives that reflect pure price differences.
Source:
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012
Created:
2008-03-11
Updated:
2019-05-10

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