IDEAS home Printed from https://ideas.repec.org/p/hit/rcpdwp/11.html
   My bibliography  Save this paper

Analysis of Price Level Heterogeneity across Households based on the Geary-Khamis Price Index

Author

Listed:
  • Abe, Naohito
  • Shiotani, Kyosuke

Abstract

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.

Suggested Citation

  • Abe, Naohito & Shiotani, Kyosuke, 2014. "Analysis of Price Level Heterogeneity across Households based on the Geary-Khamis Price Index," Research Center for Price Dynamics Working Paper Series 11, Research Center for Price Dynamics, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:rcpdwp:11
    as

    Download full text from publisher

    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26496/1/ifd_wp011.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Mark Aguiar & Erik Hurst, 2007. "Life-Cycle Prices and Production," American Economic Review, American Economic Association, vol. 97(5), pages 1533-1559, December.
    3. 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.
    4. 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)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/pdhitjp.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.