Adjusted gross disposable income of households per capita in PPS
Publication date: 08 June 2018, GMT
Reporting period: 2005 - 2016
32 timeseries
Source:EUROSTAT
Time period or range
Geopolitical entity (reporting)
Unit of measure
Sector
Direction of flow
National accounts indicator (ESA 2010)

Adjusted gross disposable income of households per capita in PPS - Eurostat

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Real adjusted gross disposable income of households per capita in PPS is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population.

Adjusted gross disposable income of households gives broader picture of houeholds' income by including the flows corresponding to the use of individual goods and services which these households receive free of charge from government and NPISHs, i.e. social transfers in kind. This facilitates comparisons over time and across countries when there are differences or changes in economic and social conditions and in the role of general government in the redistribution of income.

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 into comparable volume aggregates. Applying nominal exchange rates in this process would overestimate the disposable income of countries with high price levels relative to countries with low price levels. The use of PPPs ensures that the adjusted disposable of all countries is valued at a uniform price level and thus reflects only differences in the actual volume of the economy.

The indicator is based on data from annual non-financial sector accounts. For more information please refer to Eurobase domain nasa_10_nf_tr.

For data on purchasing power parities please refer to Eurobase domain prc_ppp_ind.

For data on resident population please refer to Eurobase domain nama_10_pe.

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The adjusted gross disposable income of households per capita in PPS is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population.