Hedonic Imputation versus Time Dummy Hedonic Indexes (with a commentary by Jan de Haan)

Walter Erwin Diewert (), Heravi Saeed and Mick Silver ()

UBC Departmental Archives from UBC Department of Economics

Abstract: Statistical offices try to match item models when measuring inflation between two periods. However, for product areas with a high turnover of differentiated models, the use of hedonic indexes is more appropriate since they include the prices and quantities of unmatched new and old models. The two main approaches to hedonic indexes are hedonic imputation (HI) indexes and dummy time hedonic (HD) indexes. This study provides a formal analysis of the difference between the two approaches for alternative implementations of an index that uses weighting that is comparable to the weighting used by the Tornqvist superlative index in standard index number theory. This study shows exactly why the results may differ and discusses the issue of choice between these approaches. An illustrative study for desktop PCs is provided.

Keywords: Hedonic regressions; hedonic indexes; consumer price indexes; superlative indexes. (search for similar items in EconPapers)
JEL-codes: C43 C82 E31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2008-01-02, Revised 2008-01-02

Downloads: (external link)
http://microeconomics.ca/erwin_diewert/time.pdf Main Text (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:ubc:bricol:diewert-08-01-02-09-14-52

Access Statistics for this paper

More papers in UBC Departmental Archives from UBC Department of Economics
Series data maintained by Maureen Chin ().