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Creative and Exhaustive, but Less Practical – a Comment on the Article by Diewert and Fox

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  • Goldhammer Bernhard

    (European Central Bank, Directorate General Statistics, Taunustor 2, 60311 Frankfurt am Main, Germany.)

Abstract

The article by Diewert and Fox provides a comprehensive overview of challenges that NSOs face in producing the CPI in pandemic times by touching on many different fields. A focus is on the treatment of missing prices, where they propose different methods depending on the resources available to the NSO. However, some of the procedures proposed can be seen as being less practical like the use of reservation prices (which is also debatable from a theoretical point of view) and of alternative data sources for weights whose implementation supposedly takes longer than the pandemic itself. Overall, the article provides an important contribution for making CPI production more robust for similar crises in the future.

Suggested Citation

  • Goldhammer Bernhard, 2022. "Creative and Exhaustive, but Less Practical – a Comment on the Article by Diewert and Fox," Journal of Official Statistics, Sciendo, vol. 38(1), pages 291-293, March.
    • Handle: RePEc:vrs:offsta:v:38:y:2022:i:1:p:291-293:n:3
    DOI: 10.2478/jos-2022-0014
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    References listed on IDEAS

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    1. Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters, in: The Economics of New Goods, pages 207-248, National Bureau of Economic Research, Inc.
    2. Timothy F. Bresnahan & Robert J. Gordon, 1996. "The Economics of New Goods," NBER Books, National Bureau of Economic Research, Inc, number bres96-1, January.
    3. W. Erwin Diewert & Robert C. Feenstra, 2021. "Estimating the Benefits of New Products," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 437-473, National Bureau of Economic Research, Inc.
    4. Erica L. Groshen & Brian C. Moyer & Ana M. Aizcorbe & Ralph Bradley & David M. Friedman, 2017. "How Government Statistics Adjust for Potential Biases from Quality Change and New Goods in an Age of Digital Technologies: A View from the Trenches," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 187-210, Spring.
    5. Diewert, Erwin & Feenstra, Robert, 2019. "Estimating the Benefits of New Products: Some Approximations," Microeconomics.ca working papers erwin_diewert-2019-3, Vancouver School of Economics, revised 13 Mar 2019.
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