Term:
Perpetual inventory method (PIM) – Capital stock
Definition:
The perpetual inventory method (PIM) produces an estimate of the stock of fixed assets in existence and in the hands of producers by estimating how many of the fixed assets installed as a result of gross fixed capital formation undertaken in previous years have survived to the current period.
Domain:
Economics & National Accounts
Source:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001
