IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v230y2010i6p709-725.html
   My bibliography  Save this article

Aggregate Indices and Their Corresponding Elementary Indices

Author

Listed:
  • Mehrhoff Jens

    (Statistics Department and Research Centre, Deutsche Bundesbank,Wilhelm- Epstein-Strasse 14, 60431 Frankfurt a.M., Germany)

Abstract

“Which index formula at the elementary level, where no expenditure share weights are available, corresponds to a desired aggregate index?” To answer this question, this paper develops a statistical approach. It proposes a theoretical framework which makes it possible to achieve numerical equivalence of an elementary index with the Laspeyres, Paasche or Fisher price index. Depending on the price elasticity, different elementary indices should be applied to different groups of goods in order to approach the desired aggregate index as closely as possible. Furthermore, the new statistical approach assures internal consistency between price and volume measurement.

Suggested Citation

  • Mehrhoff Jens, 2010. "Aggregate Indices and Their Corresponding Elementary Indices," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(6), pages 709-725, December.
    • Handle: RePEc:jns:jbstat:v:230:y:2010:i:6:p:709-725
    DOI: 10.1515/jbnst-2010-0607
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jbnst-2010-0607
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jbnst-2010-0607?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Balk,Bert M., 2012. "Price and Quantity Index Numbers," Cambridge Books, Cambridge University Press, number 9781107404960, September.
    2. R. G. D. Allen, 1975. "Index Numbers in Theory and Practice," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-02312-7.
    3. Michael J. Boskin, 1998. "Consumer Prices, the Consumer Price Index, and the Cost of Living," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 3-26, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Brunetti, 2010. "The decomposition of the chained price index rate of change: generalization and interpretative effectiveness," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 12(1), pages 17-34, April.
    2. Carlo De Gregorio, 2011. "The dynamics of inflation components and their comparability among countries: the case of the HICP," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 13(1), pages 5-32, December.
    3. V. Kerry Smith & Carlos Valcarcel Wolloh, 2012. "Has Surface Water Quality Improved Since the Clean Water Act?," NBER Working Papers 18192, National Bureau of Economic Research, Inc.
    4. Diewert, W. Erwin & Fox, Kevin J., 2017. "Substitution Bias in Multilateral Methods for CPI Construction using Scanner Data," Microeconomics.ca working papers erwin_diewert-2017-3, Vancouver School of Economics, revised 23 Mar 2017.
    5. Inanoglu, Hulusi & Jacobs, Michael, Jr. & Liu, Junrong & Sickles, Robin, 2015. "Analyzing Bank Efficiency: Are "Too-Big-to-Fail" Banks Efficient?," Working Papers 15-016, Rice University, Department of Economics.
    6. Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004. "Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
    7. Gianluca Baio & Laura Magazzini & Antonio Nicita & Fabio Pammolli & Massimo Riccaboni, 2003. "Il Decreto DL 15/04/2002, n. 63 sul Contenimento della Spesa Farmaceutica - Impatto sull'Industria e Distorsioni nel Funzionamento del Mercato," Working Papers CERM 0-2003, Competitività, Regole, Mercati (CERM).
    8. Alekseev, Aleksandr & Sokolov, Mikhail V., 2021. "How to measure the average rate of change?," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 43-59.
    9. Pastor, Jesus T. & Lovell, C.A. Knox & Aparicio, Juan, 2020. "Defining a new graph inefficiency measure for the proportional directional distance function and introducing a new Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 281(1), pages 222-230.
    10. Silver Mick, 2022. "Econometric Issues in Hedonic Property Price Indices: Some Practical Help," Journal of Official Statistics, Sciendo, vol. 38(1), pages 153-186, March.
    11. Bert M. Balk, 2010. "An Assumption‐Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
    12. Goldman, Dana P. & Sood, Neeraj & Leibowitz, Arleen, 2005. "The reallocation of compensation in response to health insurance premium increases," Economics Letters, Elsevier, vol. 88(2), pages 147-151, August.
    13. Rachel Griffith & Ephraim Leibtag & Andrew Leicester & Aviv Nevo, 2008. "Timing and Quantity of Consumer Purchases and the Consumer Price Index," NBER Working Papers 14433, National Bureau of Economic Research, Inc.
    14. Diewert, Erwin, 2009. "Cost of Living Indexes and Exact Index Numbers," Economics working papers erwin_diewert-2009-6, Vancouver School of Economics, revised 13 Feb 2009.
    15. Martin L Weitzman, 1999. "A Contribution to the Theory of Welfare Comparisons," Harvard Institute of Economic Research Working Papers 1864, Harvard - Institute of Economic Research.
    16. Huerga, Javier & Steklacova, Lucia, 2008. "An application of index numbers theory to interest rates," Working Paper Series 939, European Central Bank.
    17. Consuelo Nava & Maria Grazia Zoia, 2019. "An econometric analysis of the Italian cultural supply," Papers 1910.00073, arXiv.org, revised May 2020.
    18. Miśkiewicz, Janusz, 2010. "Entropy correlation distance method. The Euro introduction effect on the Consumer Price Index," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(8), pages 1677-1687.
    19. Silver, Mick & Heravi, Saeed, 2005. "A Failure in the Measurement of Inflation: Results From a Hedonic and Matched Experiment Using Scanner Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 269-281, July.
    20. Dusan Paredes Araya & Victor Iturra Rivera, 2013. "Substitution bias and the construction of a spatial cost of living index," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 103-117, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:230:y:2010:i:6:p:709-725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.