Definition: Market prices

Category: Balance of Payments, IMF

Balance of Payments Manual 1993:
In the framework of the balance of payments ad national accounts, market price for transactions are defined as amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties and on the basis of commercial considerations only. Thus, according to this strict definition, a market price refers only to the price for one specific exchange under the stated conditions.

Handbook on quarterly national accounts, 1999:
Market prices are ESA's basic reference for valuation. Because of transport costs, trade margins and taxes less subsidies on products, the producer and the user of a given product usually perceive its value differently. In order to keep as close as possible to the views of the transactors, the system records all uses at purchaser's prices, which include transport costs, trade margins and taxes less subsidies on products, while output is recorded at basic prices, which exclude these elements (see ESA 1995, § 1.54; SNA 1993, § 3.83). http://ec.europa.eu/eurostat/ramon/statmanuals/files/BoP_Manual_Fifth_Edition_EN.pdf Handbook on quarterly national accounts