Hedonic Imputation versus Time Dummy Hedonic Indexes
October 1, 2007
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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.
Subject: Commodity markets, Expenditure
Keywords: WP
Pages:
36
Volume:
2007
DOI:
Issue:
234
Series:
Working Paper No. 2007/234
Stock No:
WPIEA2007234
ISBN:
9781451867985
ISSN:
1018-5941
