Measuring inflation through stochastic approach to index numbers
AbstractThis study attempts to estimate the rate of inflation in Pakistan by a stochastic approach to index numbers which provides not only point estimate but also confidence interval for inflation estimate. There are two approaches to index number theory namely: the functional economic approach and the stochastic approach. The attraction of stochastic approach is that it estimates the rate of inflation in which uncertainty and statistical ideas play a major roll of screening index numbers. We have used extended stochastic approach to index numbers for measuring the Pakistan inflation by allowing for the systematic changes in the relative prices. We use CPI data covering the period July 2001--March 2008.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21513.
Date of creation: 28 Feb 2010
Date of revision:
Stochastic Approach; Index numbers; Inflation; OLS;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-04 (All new papers)
- NEP-CWA-2010-04-04 (Central & Western Asia)
- NEP-MAC-2010-04-04 (Macroeconomics)
- NEP-MON-2010-04-04 (Monetary Economics)
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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