Extending the stochastic approach to index numbers: a comment on Crompton
AbstractStochastic approach has received renewed attention in recent years (e.g. Clements and Izan, and Selvanathan and Rao). However, there was some criticism about the form of the error variance used in the new stochastic approach (see work by Diewert). In a recent paper in Applied Economics Letters, Crompton provided a solution to this problem. This article presents some comments and corrections on Crompton's work.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 10 (2003)
Issue (Month): 4 ()
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- Prasada Rao, D S & Selvanathan, E Anthony & Pilat, Dirk, 1995. "Generalized Theil-Tornqvist Indices with Applications to International Comparisons of Prices and Real Output," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 352-60, May.
- Diewert, Erwin, 2007. "Index Numbers," Economics working papers diewert-07-01-03-08-17-23, Vancouver School of Economics, revised 31 Jan 2007.
- Clements, Kenneth W & Izan, H Y, 1987. "The Measurement of Inflation: A Stochastic Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(3), pages 339-50, July.
- Selvanathan, E. A. & Prasada Rao, D. S., 1992. "An econometric approach to the construction of generalized Theil-Tornqvist indices for multilateral comparisons," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 335-346.
- Rao, D S Prasada & Selvanathan, E A, 1992. "Computation of Standard Errors for Geary-Khamis Parities and International Prices: A Stochastic Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(1), pages 109-15, January.
- Selvanathan, E A, 1989. "A Note on the Stochastic Approach to Index Numbers," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(4), pages 471-74, October.
- Iqbal, Javed & Hanif, Muhammad Nadim, 2010. "Measuring Standard Error of Inflation in Pakistan: A Stochastic Approach," MPRA Paper 35422, University Library of Munich, Germany.
- Zahid, Asghar & Frahat, Tahira, 2010. "Measuring inflation through stochastic approach to index numbers," MPRA Paper 21513, University Library of Munich, Germany.
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