Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5096633 | Journal of Econometrics | 2011 | 11 Pages |
Abstract
The use of scanner data in the CPI makes it possible to compile superlative price indexes at detailed aggregation levels since prices and quantities are available. A potential drawback is the high attrition rate of items. The usual solution to handle this problem, high-frequency chaining, can create drift in the index series due to price and quantity bouncing arising from sales. Ivancic, Diewert and Fox (2009) have recently proposed an approach that provides drift free, superlative-type indexes through adapting multilateral index number theory. In this paper we apply their proposal to seven product groups and find promising results. We compare the results with those obtained by using the Dutch method to deal with supermarket scanner data.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Jan de Haan, Heymerik A. van der Grient,