An Index Number Formula Problem: The Aggregation of Broadly Comparable Items

Mick Silver ()

No 09/19, IMF Working Papers from International Monetary Fund

Abstract: Index number theory informs us that if data on matched prices and quantities are available, a superlative index number formula is best to aggregate heterogeneous items, and a unit value index to aggregate homogeneous ones. The formulas can give very different results. Neglected is the practical case of broadly comparable items. This paper provides a formal analysis as to why such formulas differ and proposes a solution to this index number problem.

Keywords: Indexation; Consumer price indexes; Producer price indexes; Economic models (search for similar items in EconPapers)
Date: 2009-01-28
View list of references

Downloads: (external link)
http://www.imf.org/external/pubs/ft/wp/2009/wp0919.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:imf:imfwpa:09/19

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund
Address: International Monetary Fund, Washington, DC USA
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().