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The Generalized Unit Value Index

Author

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  • Ludwig von Auer

Abstract

The inflation rate is normally computed as a weighted average of individual price changes. Alternatively, this rate could be evaluated by comparing average price levels. Unfortunately, this methodology has received limited attention in past research. This study attempts to remedy this situation by introducing a group of Generalized Unit Value indices that evaluate price level changes. The group includes some well-known (Laspeyres, Paasche, Banerjee), hardly known (Lehr, Davies), and previously unknown price indices. An assessment of their axiomatic properties is presented.

Suggested Citation

  • Ludwig von Auer, 2011. "The Generalized Unit Value Index," Research Papers in Economics 2011-12, University of Trier, Department of Economics.
    • Handle: RePEc:trr:wpaper:201112
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    File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2011-12.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
    1. Mick Silver, 2010. "The Wrongs And Rights Of Unit Value Indices," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 206-223, June.
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    Cited by:

    1. Ludwig Auer, 2014. "The Generalized Unit Value Index Family," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 843-861, December.
    2. Can Tongur, 2019. "Inflation Measurement with Scanner Data and an Ever-Changing Fixed Basket," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 509, pages 31-47.
    3. Ludwig Auer, 2012. "Räumliche Preisvergleiche: Aggregationskonzepte und Forschungsperspektiven," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 6(1), pages 27-56, December.

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    More about this item

    Keywords

    Index Theory; Inflation; Unit Value; Measurement;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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