An Index Number Formula Problem: The Aggregation of Broadly Comparable Items
AbstractIndex number theory informs us that if data on matched prices and quantities are available, a superlative index number formula is best to aggregate heterogeneous items, and a unit value index to aggregate homogeneous ones. The formulas can give very different results. Neglected is the practical case of broadly comparable items. This paper provides a formal analysis as to why such formulas differ and proposes a solution to this index number problem.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 09/19.
Date of creation: 01 Jan 2009
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
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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