European Commission, DG ESTAT Eurostat Tender

Title: Purchasing Power Parities (ppps) For Capital Goods description: Purchasing Power Parities (ppps) Are Indicators Of Price Level Differences Across Countries. Ppps Tell Us How Many Currency Units A Given Quantity Of Goods And Services Costs In Different Countries. Ppps Can Thus Be Used As Currency Conversion Rates To Convert Expenditures Expressed In National Currencies Into An Artificial Common Currency (the Purchasing Power Standard, Pps), Eliminating The Effect Of Price Level Differences Across Countries. The Main Use Of Ppps Is To Convert National Accounts Aggregates, Like The Gross Domestic Product (gdp) Of Different Countries, Into Comparable Volume Aggregates. Applying Nominal Exchange Rates In This Process Would Overestimate The Gdp Of Countries With High Price Levels Relative To Countries With Low Price Levels. The Use Of Ppps Ensures That The Gdp Of All Countries Is Valued At A Uniform Price Level And Thus Reflects Only Differences In The Actual Volume Of The Economy. Ppps Are Also Applied In Analyses Of Relative Price Levels Across Countries. For This Purpose, The Ppps Are Divided By The Current Nominal Exchange Rate To Obtain A Price Level Index (pli) Which Expresses The Price Level Of A Given Country Relative To Another, Or Relative To A Group Of Countries Like The Eu. The Production Of Ppps Is A Multilateral Exercise Involving The National Statistical Institutes Of The Participating Countries, Eurostat And The Oecd, Which Is Known As Eurostat-oecd Programme Or European Comparison Programme (ecp). Across The World, Regional Ppp Programs Exist. These Programs And The Eurostat-oecd Ppp Program Are Linked Together At Global Level By The World Bank In The International Comparison Program (icp), Producing Ppps For Nearly 200 Countries Across The World.