An Index Number Formula Problem: The Aggregation of Broadly Comparable items
January 1, 2009
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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.
Subject: Export price indexes, Price indexes
Keywords: index number, price index, unit value index, WP
Pages:
22
Volume:
2009
DOI:
Issue:
019
Series:
Working Paper No. 2009/019
Stock No:
WPIEA2009019
ISBN:
9781451871661
ISSN:
1018-5941
