The Difference Between Hedonic Imputation Indexes and Time Dummy Hedonic Indexes
AbstractStatistical offices try to match item models when measuring inflation between two periods. For product areas with a high turnover of differentiated models, however, the use of hedonic indexes is more appropriate since they include the prices and quantities of unmatched new and old models. The two main approaches to hedonic indexes are hedonic imputation (HI) indexes and dummy time hedonic (DTH) indexes. This study provides a formal analysis of the difference between the two approaches for alternative implementations of the TÃ¶rnqvist "superlative" index. It shows why the results may differ and discusses the issue of choice between these approaches.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 06/181.
Date of creation: 01 Jul 2006
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Other versions of this item:
- Silver, Mick & Heravi, Saeed, 2007. "The Difference Between Hedonic Imputation Indexes and Time Dummy Hedonic Indexes," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 239-246, April.
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.:
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