Global Purchasing Power Parities and Real Expenditures - Afristat

GlossaryActual individual consumption. Actual individual consumptionis measured by the total value of household finalconsumption expenditure, nonprofit institutions (such asNGOs and charities) serving households’ final consumptionexpenditure, and government expenditure on individualconsumption of goods and services (such as educationor health).Additivity. The values of the national accounts aggregatesof countries participating in a comparison are equal to thesum of the values of their components when both aggregatesand components are valued at current national prices.Additivity requires this identity to be preserved when thevalues of the aggregates and their components are valued atinternational prices. An aggregation method is additive if,for each country being compared, it provides real values forbasic headings that sum to the real values of the aggregatesof which they are components. An additive aggregationmethod provides volumes that satisfy the average test forvolumes, but are subject to the Gerschenkron effect (seebelow).Aggregate. The sum of a set of transactions relating to aspecified flow of goods and services in a given period, suchas the total purchases made by resident households on consumergoods and services, the total expenditure by governmenton collective services, or the total value of gross fixedcapital formation. The term “aggregate” is also used to meanthe value of the specified set of transactions.Aggregation. The procedure of computing PPPs above thebasic-heading level. The process of weighting, summing,and averaging basic-heading PPPs to obtain PPPs for eachlevel of aggregation up to and including GDP.Alcoholic beverages and tobacco. Alcoholic beveragespurchased for consumption at home; includes low or nonalcoholicbeverages that are generally alcoholic, such asnonalcoholic beer; excludes alcoholic beverages sold forimmediate consumption away from the home by hotels,restaurants, cafés, bars, kiosks, street vendors, automaticvending machines, and so forth. All purchases of tobacco byhouseholds, including purchases of tobacco in cafés, bars,restaurants, service stations, and so forth.Balance of exports and imports. The free on board (f.o.b.)value of exports of goods and services, less the f.o.b. valueof imports of goods and services. When no distinctionbetween goods and services is required, it may be definedas the f.o.b. value of exports of goods and services, less thecost, insurance, and freight (c.i.f.) value of imports of goodsand services.201