Definition: Specification pricing

Category: Purchasing power parities

The pricing methodology whereby a list of precisely-defined products is selected in consultation with the countries participating in the comparison with a view to having comparable products priced in each country. Products are fully defined in terms of all characteristics which influence their transaction prices. The objective is to price to constant quality in order to produce price relatives that reflect pure price differences. http://ec.europa.eu/eurostat/product?code=KS-RA-12-023&mode=view Eurostat and Organization for Economic Cooperation and Development (OECD), "Eurostat - OECD Methodological manual on purchasing power parities (2005 Edition)", Methods and Nomenclatures, Office for Official Publications of the European Communities, Luxembourg, 2006European Union, Regulation (EC) No 1445/2007 establishing rules for the provision of basic information on PPPs, Official Journal of the European Union No L 336, 20.12.2007, p. 1 - 24