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Exploring Theil's best linear indexes

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  • Eric Blankmeyer

Abstract

Theil (1960) estimates price and quantity indexes jointly by orthogonal regression. This letter shows how to bootstrap Theil's indexes and how to detect outliers. Aggregation issues are discussed, and the methodology is applied to a cross section of nursing facilities.

Suggested Citation

  • Eric Blankmeyer, 2013. "Exploring Theil's best linear indexes," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 462-465, March.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:5:p:462-465
    DOI: 10.1080/13504851.2012.714065
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    References listed on IDEAS

    as
    1. 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 339-350, July.
    2. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    3. Flachaire, Emmanuel, 2005. "Bootstrapping heteroskedastic regression models: wild bootstrap vs. pairs bootstrap," Computational Statistics & Data Analysis, Elsevier, vol. 49(2), pages 361-376, April.
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