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Probabilistic sampling strategy as a means of improving quality of price indices

Author

Listed:
  • Seljak Rudi

    (Statistical Office of Republic Slovenia, Ljubljana, Slovenia)

  • Bregar Lea

    (Faculty of Economic, University of Ljubljana, Slovenia)

  • Colić Sanda

    (Croatian Bureau of Statistics, Croatia)

  • Dozet Maja

    (Croatian Bureau of Statistics, Croatia)

Abstract

In spite of theoretical inferiority, a large majority of statistical institutes use non-probabilistic sampling techniques in price surveys. The main disadvantage of non-probabilistic sample design is that the risk of biased results is increased. Attempting to handle this risk in the domain of service producer price indices (SPPI) of professional services, the Croatian Bureau of Statistics (CBS) developed an innovative methodology and implemented it relying on the probability proportional to size (PPS) sample design. The purpose of the paper is to evaluate the impact of the probabilistic sampling strategy on the quality of price indices as shown in the case of SPPI for professional services at the CBS. The paper outlines respective methodological upgrading of SPPI compilation at the CBS, including also the method for variance estimation. The effect of the probabilistic sampling on SPPI is analysed by comparison with traditional purposive sampling surveys. The quality of SPPI based on the probabilistic sample approach is examined by coefficients of variation and confidence intervals.

Suggested Citation

  • Seljak Rudi & Bregar Lea & Colić Sanda & Dozet Maja, 2018. "Probabilistic sampling strategy as a means of improving quality of price indices," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 4(2), pages 35-46, November.
    • Handle: RePEc:vrs:crebss:v:4:y:2018:i:2:p:35-46:n:5
    DOI: 10.2478/crebss-2018-0011
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    References listed on IDEAS

    as
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    2. Saeed Heravi & Peter Morgan, 2014. "A comparison of six sampling schemes for price index construction in a COICOP food group," Applied Economics, Taylor & Francis Journals, vol. 46(22), pages 2685-2699, August.
    3. Marshall Reinsdorf & Jack E. Triplett, 2009. "A Review of Reviews: Ninety Years of Professional Thinking About the Consumer Price Index," NBER Chapters, in: Price Index Concepts and Measurement, pages 17-83, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    accuracy; price index; probability sampling; weights design;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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