An Index Number Formula Problem: The Aggregation of Broadly Comparable items
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Summary:
Index number theory informs us that if data on matched prices and quantities are available, a superlative index number formula is best to aggregate heterogeneous items, and a unit value index to aggregate homogeneous ones. The formulas can give very different results. Neglected is the practical case of broadly comparable items. This paper provides a formal analysis as to why such formulas differ and proposes a solution to this index number problem.
Series:
Working Paper No. 2009/019
Subject:
English
Publication Date:
January 1, 2009
ISBN/ISSN:
9781451871661/1018-5941
Stock No:
WPIEA2009019
Pages:
22
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