Analysis of Price Level Heterogeneity across Households based on the Geary-Khamis Price Index
We construct a household price index based on household-level scanner data (homescan data). Instead of the conventional Paasche type price index, in this paper, we apply the Geary-Khamis (GK) method that is commonly used to measure the values of different currencies in international trade. The mathematical properties of the GK price index help identify the complex factors behind household-level price differentials. We ?d that households that buy cereals, manufactured foods, and daily products at weekend bargain rates, reduce their price levels signi?antly. Further, households with children make purchases at lower prices than households without children through frequent bulk purchases at bargain sales. Certain types of shopping behaviors of the elderly lead them to make purchases at higher prices than the young. Speci?ally, shopping at specialized stores, not shopping at home improvement stores, spending less on Sundays, and purchasing the same goods repeatedly increase the price levels for the elderly.
|Length:||9,  p.|
|Date of creation:||Mar 2014|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186-8603|
Web page: http://www.ier.hit-u.ac.jp/~ifd/index.html
More information through EDIRC
References listed on IDEAS
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.:
- Michael R. Baye & John Morgan & Patrick Scholten, 2004.
"Price Dispersion In The Small And In The Large: Evidence From An Internet Price Comparison Site,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 52(4), pages 463-496, December.
- Michael R. Baye & John Morgan & Patrick Scholten, 2004. "Price Dispersion in the Small and in the Large: Evidence from an Internet Price Comparison Site," Working Papers 2004-03, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Mark Aguiar & Erik Hurst, 2007. "Life-Cycle Prices and Production," American Economic Review, American Economic Association, vol. 97(5), pages 1533-1559, December.
- Mark Aguiar & Erik Hurst, 2005. "Lifecycle Prices and Production," NBER Working Papers 11601, National Bureau of Economic Research, Inc.
- Haskel, Jonathan & Wolf, Holger, 2001. " The Law of One Price--A Case Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 545-558, December.
- Jonathan Haskel & Holger C. Wolf, 2001. "The Law of One Price - A Case Study," CESifo Working Paper Series 428, CESifo Group Munich.
- Jonathan Haskel & Holger Wolf, 2001. "The Law of One Price - A Case Study," NBER Working Papers 8112, National Bureau of Economic Research, Inc.
- Emi Nakamura & Jón Steinsson, 2008. "Five Facts about Prices: A Reevaluation of Menu Cost Models," The Quarterly Journal of Economics, Oxford University Press, vol. 123(4), pages 1415-1464. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hit:rcpdwp:11. 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: (Digital Resources Section, Hitotsubashi University Library)
If references are entirely missing, you can add them using this form.