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Methods explained: Perpetual Inventory Method (PIM)


  • Sumit Dey-Chowdhury

    (Department for Business, Enterprise & Regulatory Reform)


Outlines where it is used within ONS and discusses the key parameters of a PIMThis article outlines where the perpetual inventory method (PIM) is used within the Office for National Statistics and discusses in detail the key parameters of a PIM; the asset service life, the retirement distribution and the depreciation function. It covers why these parameters are of importance in the application of a PIM and also highlights some of the key related conceptual issues. The article then concludes with an example illustrating how a PIM can be used to estimate gross capital stock, consumption of fixed capital and net capital stock, which are the principal uses of a PIM. Economic & Labour Market Review (2008) 2, 48–52; doi:10.1057/elmr.2008.124

Suggested Citation

  • Sumit Dey-Chowdhury, 2008. "Methods explained: Perpetual Inventory Method (PIM)," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 2(9), pages 48-52, September.
  • Handle: RePEc:pal:ecolmr:v:2:y:2008:i:9:p:48-52

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