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Why Elementary Price Index Number Formulas Differ :, Price Dispersion and Product Heterogeneity, Mick Silver, Saeed Heravi

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Abstract
The Consumer Price Index Manual (2004) provides guidelines for aggregation formulas that are promulgated at IMF training courses and technical assistance missions. This paper develops elementary level aggregation theory to better inform users and compilers. Most countries use either the Dutot or Jevons index formula. These formulas generally give different results; advice on choice of formula matters. Using an approach based on sample estimators, and an illustration based on scanner data, the paper shows how differences in these formulas can be explained by changes in price dispersion and, in turn, by product heterogeneity. Implications for choice of formula are considered
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. ELEMENTARY INDEX NUMBER FORMULAS, THEIR USE AND JUSTIFICATION""; ""III. DIFFERENCES BETWEEN THE JEVONS AND DUTOT FORMULAS""; ""IV. EMPIRICAL WORK""; ""V. IMPLICATIONS FOR CPI COMPILATION""; ""VI. SUMMARY""; ""Data Annex""
Language
eng
Literary Form
non fiction
Note
"July 2006."
Physical Description
1 online resource (18 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9780145198701

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