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The lowest level of aggregation of items in the GDP breakdown for which parities are calculated.

In theory, a basic heading is defined as a group of similar well-defined goods or services. In practice, it is defined by the lowest level of final expenditure for which explicit expenditure weights can be estimated. Thus, an actual basic heading can cover a broader range of products than is theoretically desirable.

Basic headings are the building blocks of a comparison. It is at the level of the basic heading that expenditures are defined, products selected, prices collected, prices edited and PPPs first calculated and averaged.

Source Publication:
Eurostat, OECD, 2007, Eurostat-OECD Methodological Manual on Purchasing Power Parities, OECD, Paris – Annex VII, Glossary of terms and abbreviations.

Statistical Theme: Prices and purchasing power partities

Created on Thursday, February 6, 2003

Last updated on Thursday, July 26, 2007