The disposable income of private households is derived from the balance of primary income by adding all current transfers from the government, except social transfers in kind and subtracting current transfers from the households such as income taxes, regular taxes on wealth, regular inter-household cash transfers and social contributions. When divided by the regional population, the disposable income is called disposable income per capita.To make comparisons over time and across countries, regional disposable income is expressed at constant prices (year 2000), computing the deflator from the OECD national final consumption expenditure of households in current and constant prices; then it is converted into USD purchasing power parities (PPPs) for private consumption to express each country’s income in a common currency.
Regions in OECD Member Countries have been classified according to two territorial levels (TL). The higher level (Territorial Level 2) consists of about 363 larger regions while the lower level (Territorial Level 3) is composed of 1 802 smaller regions. This classification - which, for European countries, is largely consistent with the Eurostat classification - facilitates greater comparability of regions at the same territorial level. The differences with the Eurostat NUTS classification concern Belgium, Greece and the Netherlands where the NUTS 2 level correspond to the OECD TL3 and Germany where the NUTS1 corresponds to the OECD TL2 and the OECD TL3 corresponds to 97 spatial planning regions (Groups of Kreise). For the United Kingdom the Eurostat NUTS1 corresponds to the OECD TL2.
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