Hedonics and the Consumer Price Index
The paper begins by explaining the rational for the use of hedonic price indexes. It then reviews the problems that in the past have been associated with incorporating hedonics in the Consumer Price Index. The paper shows that many of those problems can now be overcome, though some care in choice of techniques used to implement the hedonic procedure is necessary. There are two important issues with hedonics that remain; that of sample attrition, and the fact that the index is designed as an upper bound to the required price adjustment (and hence may be overly generous). The paper shows that there is a very real sense in which both of these issues are likely to be more problematic for the more traditional matched model indices than for hedonics, and hence should not delay the role out of hedonics. Finally the paper provides suggestions for research to determine which commodity groups are likely to be most affected by attrition and the lack of tightness of the upper bound, and then considers ways to ameliorate these problems when they arise.
Volume (Year): (2005)
Issue (Month): 79-80 ()
|Contact details of provider:|| Postal: |
Web page: http://annales.ensae.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2005:i:79-80:p:27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.