Elementary Aggregates, Micro‐indices and Scanner Data: Some Issues in the Compilation of Consumer Price Indices

Silver, Mick

doi:10.1111/j.1475-4991.1995.tb00136.x

Cited by 27 publications

(36 citation statements)

References 9 publications

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“…This means that both price and quantity data is available to index practitioners often at a very disaggregated level. This has led many authors to emphasize the advantages of scanner data over the data that is conventionally used by statistical agencies to compute price indexes (Diewert, 1993; Silver, 1995; Bradley et al. , 1997; Dalén, 1997; Richardson, 2000; Schut, 2002; Silver and Webb, 2002).…”

Section: Introductionmentioning

confidence: 99%

Accounting for the Effects of New and Disappearing Goods Using Scanner Data

Melser

2006

Review of Income and Wealth

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With the "discovery" of scanner data by statistical agencies and researchers comes a wealth of new information upon which price index calculations can be based. Old problems, such as the appearance and disappearance of goods over time, are likely to be an important feature of such data. However, given that scanner data includes the prices and quantities of the population of transactions we have more information than is traditionally available to deal with the new and disappearing goods problem. We adopt a recently developed approach using the Constant Elasticity of Substitution cost function to provide a detailed empirical analysis of the effects of new and disappearing goods for an Australian scanner data set of supermarket products. Our results indicate that the failure to account for new and disappearing goods in the cost-of-living index leads to a significant upward bias. Copyright � 2006 The Author; Journal compilation � International Association for Research in Income and Wealth 2006.

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Section: Introductionmentioning

confidence: 99%

Accounting for the Effects of New and Disappearing Goods Using Scanner Data

Melser

2006

Review of Income and Wealth

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“…The average bias and its large variation, for all the indexes considered here, is consistent with the large variety of the magnitudes of the elementary index bias found in the previous literature (using a more limited number of product categories and index comparisons). The large difference in TV price inflation when using the Dutot index vs. a T€ ornqvist index found by Silver (1995) was already mentioned above. But also Laspeyres indexes show large varying biases at the elementary level.…”

Section: Elementary Index Biasmentioning

confidence: 56%

“…index, such as a Fisher ideal or T€ ornqvist index, at the elementary aggregate level, can be found in a number of scanner data studies. Feenstra and Shapiro (2003) and Silver (1995) both compare a Laspeyres index with a T€ ornqvist index. Dal en (1997), Hawkes (1997), Ivancic et al (2011), Jain and Abello (2001), Reinsdorf (1999), and Rotaru et al (2011) all compare a Laspeyres index with a Fisher ideal index.…”

Section: Related Literaturementioning

confidence: 99%

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Elementary Index Bias: Evidence for the Euro Area from a Large Scanner Dataset

Gábor-Tóth

Vermeulen

2019

German Economic Review

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We provide evidence on the effect of elementary index choice on inflation measurement in the euro area. Using scanner data for 15,844 individual items from 42 product categories and 10 euro area countries, we compute product category level elementary price indexes using eight different elementary index formulas. Measured inflation outcomes of the different index formulas are compared with the Fisher ideal index to quantify elementary index bias. We have three main findings. First, elementary index bias is quite variable across product categories, countries and index formulas. Second, a comparison of elementary index formulas with and without expenditure weights shows that a shift from price only indexes to expenditure weighted indexes would entail at the product level multiple percentage points differences in measured price changes. And finally, we show that elementary index bias is quantitatively more important than upper level substitution bias.

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“…In future, data from supermarket scanners may become available to resolve the problem (Silver 1995).…”

Section: Notesmentioning

confidence: 99%

The implications of the Boskin Report

Oulton¹

1998

Natl. Inst. econ. rev.

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The Boskin Commission has claimed that the US Consumer Price Index (CPI) is currently overestimating the true rate of inflation by 1.1 percentage points per annum. This article assesses the evidence for this conclusion and its implications for the measurement of past and future US economic performance. 1 f Boskin is right, US GDP growth in the period 1970 to 1996 has been underestimated by about 0.9 per cent per annum. Some at least of the methodological changes recommended by Boskin will probably be adopted. As a result US GDP growth will appear to rise, eventually by as much as 0.5 per cent per annum, even though no genuine improvement in economic performance has actually occurred. Boskin has implications for the UK too. Recent evidence suggests that use of a formula recommended by Boskin for averaging price quotes together can by itself reduce UK inflation by 0.4 per cent per annum.

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Elementary Aggregates, Micro‐indices and Scanner Data: Some Issues in the Compilation of Consumer Price Indices

Cited by 27 publications

References 9 publications

Accounting for the Effects of New and Disappearing Goods Using Scanner Data

Accounting for the Effects of New and Disappearing Goods Using Scanner Data

Elementary Index Bias: Evidence for the Euro Area from a Large Scanner Dataset

The implications of the Boskin Report

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