Generalized Fisher Price Indexes and the Use of Scanner Data in the CPI

Download or read book Generalized Fisher Price Indexes and the Use of Scanner Data in the CPI written by and published by . This book was released on 2001 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Statistics Netherlands intends to use scanner data provided by retailers in compiling the CPI. This has two important advantages. First, taking a sample of items to estimate the commodity group price index for a particular type of outlet becomes unnecessary. Second, the Laspeyres-type index formula currently applied can be replaced by an index formula that is better suited for handling dynamic aspects such as commodity substitution and the introduction of new goods. The present paper suggests the use of a so-called generalized Fisher price index, based on a set of goods that is variable through time. This index contains prices of new and disappearing goods that cannot be observed directly and that should therefore be imputed. The relation with quality adjustment procedures is addressed as well. Key words: Consumer price index ; Imputation ; New goods ; Quality adjustment ; Scanner data ; Substitution.