Computing Sub-national PPPs with CPI Data: An Empirical Analysis on Italian Data Using Country Product Dummy Models

Luigi Biggeri, Tiziana Laureti () and Federico Polidoro
Additional contact information
Luigi Biggeri: University of Florence
Tiziana Laureti: University of Tuscia
Federico Polidoro: Istat

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2017, vol. 131, issue 1, No 6, 93-121

Abstract: Abstract The Italian National Statistical Office is implementing a new project for computing sub-national Purchasing Power Parities (PPPs) on a regular basis, which is based on an appropriate use of existing Consumer Price Index (CPI) data and new sources of data. Concerning the use of CPI data, in this paper the role of the Country Product Dummy (CPD) method for compiling sub-national PPPs at Basic–Heading (BH) level is analysed together with the specific issues that arise in this context, such as the need to take spatial autocorrelation among price relatives into account. The results of various experiments based on CPI data concerning 7 BHs and 19 Italian regional chief towns are presented and discussed with the aim of exploring the performance of various CPD models and analysing to what extent the type and characteristics of the data affect the estimates obtained. The statistical uncertainty associated with the ranks derived from the regional PPPs was then calculated by means of a simulation procedure. Our findings prove to be interesting and confirm that methods and CPI data for spatial comparisons are reciprocally influenced.

Keywords: Sub-national PPPs; Hedonic CPD; Spatial correlation; Spatial error models; Multipurpose price statistics (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://link.springer.com/10.1007/s11205-015-1217-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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: https://EconPapers.repec.org/RePEc:spr:soinre:v:131:y:2017:i:1:d:10.1007_s11205-015-1217-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11205-015-1217-x

Access Statistics for this article

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino

More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().