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Eurostat-OECD Methodological Manual on Purchasing Power Parities (2012 Edition)

image of Eurostat-OECD Methodological Manual on Purchasing Power Parities (2012 Edition)

The OECD, Eurostat, and 47 participating countries work together in establishing purchasing power parities, or PPPs, in order to compare the price and volume levels of the GDPs. This programme is called the Eurostat-OECD PPP Programme. The manual gives a complete, detailed and up-to-date description of the functioning of the programme. This includes its organisation, the various surveys carried out by participating countries and the ways PPPs are calculated and disseminated. It also provides guidance on the use of PPPs.

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Organisation

When the Eurostat-OECD PPP Programme was established in the early 1980s, only OECD Member Countries were covered, benchmark comparisons were made every five years and all data were collected over an 18 month period centred on the reference year. Organisation was straightforward. Eurostat was responsible for those OECD Member Countries that were also Members of the European Union and the OECD was responsible for those OECD Member Countries that were not. This division of responsibilities has changed with time mainly as the result of the enlargement of the European Union1 (and, but to a lesser extent, of the OECD) and the sizeable jump in the number of countries participating in the Programme that occurred during the second half of the 1990s2. The evolution of Eurostat and OECD responsibilities is charted in Annex I which provides a brief history of the Programme.

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