Evaluating Imperfections and Biases in Price Indexes during Transition
The rapidly changing environment of the transition may create special problems for calculation of index numbers that require a fixed basket of goods and outlets. Using referent-level data we find that using a fixed-weight Laspeyres Index may overstate inflation rates by approximately 5 per cent a year when compared with a superlative index in the Czech Republic. We find no evidence of such problems using more aggregate data for Bulgaria and Hungary. This suggests that the extent of the problems discovered might have been even greater if we had been able to use item/store level data.
|Date of creation:||Sep 2001|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 882, Politickych veznu 7, 111 21 Praha 1|
Phone: (+420) 224 005 123
Fax: (+420) 224 005 333
Web page: http://www.cerge-ei.cz
More information through EDIRC
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.:
- Randall K. Filer & Jan Hanousek, 2001.
"Output Changes and Inflationary Bias in Transition,"
- Jan Hanousek & Randall K. Filer, 2000. "Output Changes and Inflationary Bias in Transition," CERGE-EI Working Papers wp167, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Deborah J. Brown & Lee F. Schrader, 1990. "Cholesterol Information and Shell Egg Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 548-555.
- Jan Hanousek & Randall K. Filer, 2001.
"Survey-based Estimates of Biases in Consumer Price Indices During Transition: Evidence from Romania,"
CERGE-EI Working Papers
wp178, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Filer, Randall K. & Hanousek, Jan, 2002. "Survey-Based Estimates of Biases in Consumer Price Indices during Transition: Evidence from Romania," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 476-487, September.
- Brada, Josef C. & King, Arthur E. & Kutan, Ali M., 2000. "Inflation bias and productivity shocks in transition economies: The case of the Czech Republic," ZEI Working Papers B 02-2000, University of Bonn, ZEI - Center for European Integration Studies.
- Matthew D. Shapiro & David W. Wilcox, 1997.
"Alternative strategies for aggregating prices in the CPI,"
Federal Reserve Bank of St. Louis, issue May, pages 113-125.
- Matthew D. Shapiro & David W. Wilcox, 1997. "Alternative Strategies for Aggregating Prices in the CPI," NBER Working Papers 5980, National Bureau of Economic Research, Inc.
- Mark A. Wynne & Fiona D. Sigalla, 1994. "The consumer price index," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 1-22.
- Triplett, Jack E, 2001. "Should the Cost-of-Living Index Provide the Conceptual Framework for a Consumer Price Index?," Economic Journal, Royal Economic Society, vol. 111(472), pages F311-34, June.
- Jan Hanousek & Randall K. Filer, 2001.
"Consumers' Opinion of Inflation Bias Due to Quality Improvements in Transition in the Czech Republic,"
Development and Comp Systems
- Jan Hanousek & Randall K. Filer, 2001. "Consumers' Opinion of Inflation Bias Due to Quality Improvements in Transition in the Czech Republic," CERGE-EI Working Papers wp184, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
- Brent R. Moulton, 1996. "Bias in the Consumer Price Index: What Is the Evidence?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 159-177, Fall.
- repec:sae:niesru:v:152:y::i:1:p:60-75 is not listed on IDEAS
- Paula De Masi & Vincent Koen, 1997. "Prices in the Transition; Ten Stylized Facts," IMF Working Papers 97/158, International Monetary Fund.
- Kent Osband, 1992. "Index Number Biases during Price Liberalization," IMF Staff Papers, Palgrave Macmillan, vol. 39(2), pages 287-309, June.
When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp186. 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: (Jana Koudelkova)
If references are entirely missing, you can add them using this form.