Advanced Search
MyIDEAS: Login to save this article or follow this journal

Notes on Unit Value Index Bias

Contents:

Author Info

  • Peter von der Lippe

    ()
    (Universitaet Duisburg-Essen)

  • W.Erwin Diewert

    ()
    (University of British Columbia, Canada)

Abstract

It is often the case that the value of a number of somewhat similar units (e. g., automobiles of a certain general type) is divided by the number of units in order to form a unit value price and these unit value prices are compared over two periods in order to form a unit value price index. This unit value price index or Drobisch price index can then be compared with other standard index number formulae and the bias in the index can be determined. The present paper presents most of the known results on this bias (and derives some new ones) in a coherent framework using a simple identity from the statistics literature. A related question first considered by Pa´ rniczky (1974) is also considered: does disaggregation of a unit value into more homogeneous subgroups reduce the unit value bias? The answer seems to be: probably yes.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.wiso-net.de/webcgi?START=A60&DOKV_DB=ZECO&DOKV_NO=JFNS6C521D57426AE65B7EC3FC794DB2344A&DOKV_HS=0&PP=1
File Function: Main text
Download Restriction: Access via GENIOS - German Business Information - http://www.genios.de/r_startseite/index.ein

File URL: http://search.ebscohost.com/login.aspx?direct=true&db=ecn&AN=1152152&site=ehost-live
File Function: Main text
Download Restriction: Access via EBSCOhost Econlit - http://www.ebscohost.com/

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 230 (2010)
Issue (Month): 6 (December)
Pages: 690-708

as in new window
Handle: RePEc:jns:jbstat:v:230:y:2010:i:6:p:690-708

Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC

Related research

Keywords: Price indexes; unit value indexes; unit values; bias; Bortkiewicz; Drobisch; Paasche; Laspeyres; Fisher; Pa´ rniczky; Balk; von der Lippe;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Timmer, Marcel P., 1996. "On the Reliability of Unit Value Ratios in International Comparisons," GGDC Research Memorandum 199631, Groningen Growth and Development Centre, University of Groningen.
  2. Mick Silver, 2009. "An Index Number Formula Problem," IMF Working Papers 09/19, International Monetary Fund.
  3. 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 S206-S223, 06.
  4. W. Erwin Diewert, 1995. "Axiomatic and Economic Approaches to Elementary Price Indexes," NBER Working Papers 5104, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. von der Lippe, Peter, 2012. "Covariances and relationships between price indices: Notes on a theorem of Ladislaus von Bortkiewicz on linear index functions," MPRA Paper 38566, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:230:y:2010:i:6:p:690-708. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.