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A new proposal for the construction of a multi-period/multilateral price index

Author

Listed:
  • Consuelo R. Nava

    (Dipartimento di Economia e Scienze Politiche, Università della Valle d'Aosta - Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore)

  • Antonio Pesce

    (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore)

  • Maria Grazia Zoia

    (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore)

Abstract

Price indexes in time and space is a most relevant topic in statistical analysis from both the methodological and the application side. In this paper a price index providing a novel and effective solution to price indexes over several periods and among several countries, that is in both a multi-period and a multilateral framework, is devised. The reference basket of the devised index is the union of the intersections of the baskets of all periods/countries in pairs. As such, it provides a broader coverage than usual indexes. Index closed-form expressions and updating formulas are provided and properties investigated. Last, applications with real and simulated data provide evidence of the performance of the index at stake.

Suggested Citation

  • Consuelo R. Nava & Antonio Pesce & Maria Grazia Zoia, 2019. "A new proposal for the construction of a multi-period/multilateral price index," DISCE - Quaderni del Dipartimento di Politica Economica dipe0007, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie5:dipe0007
    as

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    File URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0007.pdf
    File Function: First version, 2019
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    References listed on IDEAS

    as
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    5. Balk,Bert M., 2012. "Price and Quantity Index Numbers," Cambridge Books, Cambridge University Press, number 9781107404960, January.
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    7. Mick Silver, 2009. "The Hedonic Country Product Dummy Method and Quality Adjustments for Purchasing Power Parity Calculations," IMF Working Papers 2009/271, International Monetary Fund.
    8. Rao, D.S. Prasada & Hajargasht, Gholamreza, 2016. "Stochastic approach to computation of purchasing power parities in the International Comparison Program (ICP)," Journal of Econometrics, Elsevier, vol. 191(2), pages 414-425.
    9. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Giacomo Damioli & Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2023. "AI technologies and employment: micro evidence from the supply side," Applied Economics Letters, Taylor & Francis Journals, vol. 30(6), pages 816-821, March.
    2. Marco Vivarelli, 2022. "Innovation and employment: a short update," DISCE - Quaderni del Dipartimento di Politica Economica dipe0024, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Luigi Campiglio, 2020. "Lo Stato Sociale: da "lusso" a necessità," DISCE - Quaderni del Dipartimento di Politica Economica dipe0008, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    multi-period price index; multilateral price index; stochastic approach; updating process; OLS;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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