Outlines where it is used within ONS and discusses the key parameters of a PIM
This article outlines where the perpetual inventory method (PIM) is used within the Office for National Statistics and discusses in detail the key parameters of a PIM; the asset service life, the retirement distribution and the depreciation function. It covers why these parameters are of importance in the application of a PIM and also highlights some of the key related conceptual issues. The article then concludes with an example illustrating how a PIM can be used to estimate gross capital stock, consumption of fixed capital and net capital stock, which are the principal uses of a PIM.
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The Full Text of this article can be found on the National Statistics website (http://www.statistics.gov.uk/elmr/09_08/downloads/ELMR_Sep08_Dey_Chowdhury.pdf).
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Dey-Chowdhury, S. Methods explained: Perpetual Inventory Method (PIM). Econ Lab Market Rev 2, 48–52 (2008). https://doi.org/10.1057/elmr.2008.140
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DOI: https://doi.org/10.1057/elmr.2008.140