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theft, breakage are things that would cause the pereptual to be overstated not understated
needs to be reworded
Sources to add, related to in industry productivity accounting and macroeconomics
The PIM (perpetual inventory method) is used in economic statistics -- industry productivity accounting and macroeconomics. The sources below show that the term dates back to at least 1952 and possibly to Kuznets in the 1940s.
Brownlie, A.D. 1964. On Measuring Capital. The Review of Economics and Statistics, 46(1), 104-105. doi:10.2307/1924083 ; www.jstor.org/stable/1924083
Kendrick, John W. 1966. Conceptual and Data Problems of Wealth Estimates in an Economic Accounting Framework. Revue De L'Institut International De Statistique / Review of the International Statistical Institute, 34(3), 360-368. doi:10.2307/1401255 ; www.jstor.org/stable/1401255