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By J. Salazar-Carrillo, D. S. Prasada Rao

Contained during this ebook are experiences concerning the computation of buying energy parities for evaluating actual source of revenue and product between Latin American nations. The crucial parts of source of revenue and product comparisons are mentioned: from designing and executing benchmark experiences, to extrapolating effects for non-benchmark years. diversified comparative tools and dimension innovations, together with index quantity formulations, are thought of. Comparisons of Latin nations with different international locations also are undertaken. This quantity goals to light up the thorny theoretical and methodological concerns thinking about nearby comparisons, and to facilitate the sensible program of the comparative method of the various sided coverage difficulties generated via a quickly integrating foreign economic system

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Remarks: W i t h o u t optional e q u i p m e n t , s t a n d a r d model Latin Amencan Compansons: Methods 31 Changes in inventories or stocks of goods are distinguished from invest­ ment in machinery and e q u i p m e n t , a n d construction because they represent circulating capital r a t h e r t h a n fixed assets, a n d therefore m u s t constitute a separate category. However, t h e fact these changes m a y b e b o t h positive (increases) a n d negative (decreases), which creates problems for t h e index n u m b e r formulas used in calculating price comparisons, parities and real p r o d u c t s , makes t h e inclusion of this concept in t h e category of capital formation necessary.

1. T h e P r o d u c t Must Match T h e Specification As far as possible the p r o d u c t s are described in such a way t h a t they can be adequately identified, t h u s ensuring comparability with other countries. It is necessary t o find a good t h a t is representative of each one of t h e descriptions contained in the questionnaire on private consumption goods and services. For some p r o d u c t s , it m a y be impossible t o find items t h a t m a t c h t h e description given. In such cases, it will be necessary to use t h e nearest equivalent to the specification a n d these d e p a r t u r e s must be noted.

Therefore, only quotations for machinery a n d equipment t h a t are applicable to final users a n d purchasers should be included. T h e prices must be recorded in the national currency of t h e country concerned. 60 SalazaT'Caxnllo 3. Visits T h e prices should be collected solely t h r o u g h visits t o producers, im­ p o r t e r s , or distributors selected by t h e supervisors of t h e survey. Each institution should decide on t h e advisability of requesting t h e permission of managers, administrators or owners of t h e firms t h a t are going t o be vis­ ited or of informing t h e m of t h e survey prior to t h e visit.

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