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Estimation of unit values in household expenditure surveys without quantity information

Martina Menon (), Federico Perali () and Nicola Tommasi ()
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Nicola Tommasi: Interdepartmental Centre of Economic Documentation, University of Verona

Stata Journal, 2017, vol. 17, issue 1, 222-239

Abstract: In this article, we present the pseudounit command, which estimates pseudounit values in cross-sections of household expenditure surveys without quan- tity information. Household surveys traditionally record only expenditure informa- tion. The lack of information about quantities purchased precludes the possibility of deriving household-specific unit values. We use a theoretical result developed by Lewbel (1989, Review of Economic Studies 56: 311–316) to construct pseudounit values by first reproducing cross-sectional price variation, then adding this vari- ability to the aggregate price indexes published by national statistical institutes. We illustrate the method with an example that uses a time series of cross-sections of Italian household budgets.

Keywords: pseudounit; unit values; cross-section prices; demand analysis (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:tsj:stataj:v:17:y:2017:i:1:p:222-239