Hedonic Imputation versus Time Dummy Hedonic Indexes
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Statistical offices try to match item models when measuring inflation between two periods. However, for product areas with a high turnover of differentiated models, the use of hedonic indexes is more appropriate since they include unmatched new and old models. There are two main competing approaches to hedonic indexes are hedonic imputation (HI) indexes and dummy time hedonic (HD) indexes. This study provides a formal analysis of exactly why the results from the two approaches may differ and discusses the issue of choice between these approaches. An illustrative study for desktop PCs is provided.
Series:
Working Paper No. 2007/234
Subject:
English
Publication Date:
October 1, 2007
ISBN/ISSN:
9781451867985/1018-5941
Stock No:
WPIEA2007234
Pages:
36
Please address any questions about this title to publications@imf.org