Definition: User-cost method

Purchasing power parities

The method of estimating the value of imputed rentals by summing the relevant cost items: intermediate consumption (current maintenance and repairs, insurance), consumption of fixed capital, other taxes on production and net operating surplus (nominal rate of return on the capital invested in the dwelling and land).
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
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