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| French
Equivalent: Méthode de l’inventaire permanent (MIP – PIM, en anglais) - SCN |
| Definition: |
The perpetual inventory method (PIM) is a method of constructing estimates of capital stock and consumption of fixed capital from time series of gross fixed capital formation.
It allows an estimate to be made of the stock of fixed assets in existence and in the hands of producers which is generally based on estimating how many of the fixed assets installed as a result of gross fixed capital formation undertaken in previous years have survived to the current period.
A PIM approach is also commonly used in valuing changes in inventories.
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| Source
Publication: |
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SNA 6.189 [6.58].
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| Statistical
Theme: National accounts |
| Created
on Tuesday, September 25, 2001 |
| Last
updated on Tuesday, March 11, 2003 |
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