scholarly journals Drobisch’s Legacy to Price Statistics

2010 ◽  
Vol 230 (6) ◽  
Author(s):  
Ludwig von Auer
Keyword(s):  
Price Index ◽  
Index Theory ◽  
Professional Life ◽  
Price Indices ◽  
German Mathematician ◽  
Unit Value ◽  
Proper Perspective ◽  
Index Formulas ◽  
Scientific Achievements

SummaryThis paper attempts to establish a greater awareness among researchers for the noteworthy contributions to price index theory made by Moritz Wilhelm Drobisch (1802-1896), a German mathematician and philosopher at the Universita¨ t Leipzig. Few economists and statisticians are aware of the fact that neither Étienne Laspeyres nor Hermann Paasche originally devised the well-known price indices that presently carry their names. Moritz Wilhelm Drobisch was the first to publish them in 1871 in a treatise and, shortly thereafter, in an abridged version that appeared in this very journal. He rejected them, however, because in his view they were inappropriate measures of inflation. Instead, he devised the unit value index, which he regarded as superior to all other price index formulas. This paper contains a description of his pioneering scientific achievements together with a synopsis of his personal and professional life. Its purpose is to give credit where credit is due, but more importantly, it attempts to recognize these seminal contributions in light of the factors that have tarnished them in the recorded annals of price index history. It attempts to put them into their proper perspective.

scholarly journals Remarks on Geo-Logarithmic Price Indices

2019 ◽  
Vol 35 (2) ◽  
pp. 287-317
Author(s):  
Jacek Białek
Keyword(s):  
Price Index ◽  
Additional Parameter ◽  
Economic Approach ◽  
Price Indices ◽  
Index Formulas ◽  
Index Family

Abstract As is known, all geo-logarithmic indices enjoy the axiomatic properties of being proportional, commensurable and homogeneous, together with their cofactors (Martini 1992a). Geologarithmic price indices satisfying the axioms of monotonicity, basis reversibility and factor reversibility have been investigated by Marco Fattore (2010), who has shown that the superlative Fisher price index does not belong to this family of indices. In this article, we discuss geo-logarithmic price indices with reference to the Laspeyres-Paasche bounding test and we propose a modification of the considered index family that satisfies this test. We also modify the structure of geo-logarithmic indices by using an additional parameter and, following the economic approach, we list superlative price index formulas that are members of the considered price index family. We obtain a special subfamily that approximates superlative price indices and includes the Fisher, Walsh and Sato-Vartia price indices.

scholarly journals More Reliable Land Price Index: Is There a Slope Effect?

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 261
Author(s):  
Yi Huang ◽  
Geoffrey Hewings
Keyword(s):  
Land Use ◽  
Price Index ◽  
House Price ◽  
Land Values ◽  
Price Indices ◽  
Land Price ◽  
House Price Indices ◽  
Physical Attributes ◽  
Constant Quality

This paper focuses on the physical attributes of land that intrinsically limit land use and possibly affect land values. In particular, we investigate if the slope of a land does decrease its price and investigate the role of land slope in forming more reliable constant-quality land price indices and aggregate house price indices. We find that, while land slopes do decrease the land price per unit, they have a small effect on the quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.

scholarly journals A RESEARCH PAPER ON A STUDY ON PRICE INDICES METHODS IN INDIA

2018 ◽  
Vol 1 (2) ◽  
pp. 15-25
Keyword(s):  
Price Index ◽  
Economic Conditions ◽  
Price Indices ◽  
Index Numbers ◽  
Price Changes ◽  
Price Fluctuations ◽  
The Real ◽  
The World ◽  
True Position ◽  
Scientific Tool

It is expected that the price index numbers which are universally used as the scientific tool of measures of price changes all over the world must reflect the real and true position of prices in economy every time since they are the only arithmetic source of measuring the price fluctuations and economic fluctuations thereby. But unfortunately, they do not seem to fulfill these expectations fully especially in India. Many times it has happened that price index numbers have failed in reflecting real economic conditions through price changes. So, this research is attempt to study all the different price indices model and try to find out the effective way out.

scholarly journals SARIMA Model for Forecasting Price Indices Fluctuations

2021 ◽  
Vol 2 (6) ◽  
pp. 1-6
Author(s):  
N. Sonai Muthu ◽  
K. Senthamarai Kannan ◽  
V. Deneshkumar ◽  
P. Thangasamy
Keyword(s):  
Rural Areas ◽  
Price Index ◽  
Inflation Rate ◽  
Price Level ◽  
Consumer Price Index ◽  
Demand Side ◽  
Price Indices ◽  
Sarima Model ◽  
Food And Beverages ◽  
Urban And Rural Areas

In day-to-day life, the price level fluctuations in the Consumer Price Index (CPI) goods and service. So, the retail consumers are affecting by that price level changes, who are on the demand side of the economy. The main objective of this work is to forecast such selected factors of CPI in urban and rural areas of India, like: Food and Beverages, Pan, Tobacco and Intoxicants, Fuel and Light and Education and also compute the inflation rate for those four main variables in all India.

AFTERSHOCKS FROM A REVOLUTION: ORDINAL UTILITY AND COST-OF-LIVING INDEXES

2011 ◽  
Vol 33 (2) ◽  
pp. 187-222
Author(s):  
THOMAS A. STAPLEFORD
Keyword(s):  
Price Index ◽  
Index Theory ◽  
Cost Of Living ◽  
The Core ◽  
Empirical Macroeconomics ◽  
Ordinal Utility ◽  
History Of ◽  
Radical Transformation

This essay argues that beneath the superficial linearity of the history of neoclassical price index theory lie important conceptual ruptures that are linked to the ordinal revolution, including a radical transformation in the core objective for cost-of-living indexes. Revealing these ruptures produces a more accurate history of both the development of neoclassical price index theory and its reception. Furthermore, we can recognize how transformations in this theory have made cost-of-living indexes more coherent with existing traditions of empirical macroeconomics even as they may have reduced the indexes’ suitability for other functions, notably adjusting income payments.

Measuring Aggregate Price Indices with Taste Shocks: Theory and Evidence for CES Preferences*

2019 ◽  
Vol 135 (1) ◽  
pp. 503-560 ◽  
Author(s):  
Stephen J Redding ◽  
David E Weinstein
Keyword(s):  
Price Index ◽  
Demand Systems ◽  
Price Indices ◽  
Cost Of Living ◽  
Price Shocks ◽  
Demand Shocks ◽  
Expenditure Share ◽  
The Cost ◽  
Ces Preferences

Abstract We develop an approach to measuring the cost of living for CES preferences that treats demand shocks as taste shocks that are equivalent to price shocks. In the presence of relative taste shocks, the Sato-Vartia price index is upward biased because an increase in the relative consumer taste for a variety lowers its taste-adjusted price and raises its expenditure share. By failing to allow for this association, the Sato-Vartia index underweights drops in taste-adjusted prices and overweights increases in taste-adjusted prices, leading to what we call a “taste-shock bias.” We show that this bias generalizes to other invertible demand systems.

Axiomatic Price Index Theory: A Survey

1995 ◽  
Vol 63 (1) ◽  
pp. 69 ◽  
Author(s):  
Bert M. Balk
Keyword(s):  
Price Index ◽  
Index Theory

scholarly journals APPLICATION OF THE MAIN COMPONENTS METHOD FOR DETERMINATION OF FACTORS OF LOGISTICS SERVICES MARKET DEVELOPMENT OF UKRAINE

2020 ◽  
Vol 7 (160) ◽  
pp. 40-47
Author(s):  
N. Hrynchak
Keyword(s):  
Factor Analysis ◽  
Price Index ◽  
Consumer Price Index ◽  
Hidden Variables ◽  
Retail Trade ◽  
Price Indices ◽  
Statistical Correlations ◽  
Transport Services ◽  
Logistics Services ◽  
Main Components

The study identifies and substantiates the main factors influencing the development of the market of logistics services in Ukraine through factor analysis by the method of main components. The application of the method of factor analysis to assess the development of the market of logistics services is based on the assumption that the indicators of different blocks are only indicators of certain existing market characteristics that are not directly measured. 9 indicators were selected for the study: wholesale turnover of enterprises, retail trade turnover, volume of exports of goods, volume of imports of goods, hryvnia devaluation index against the US dollar, rail freight index, consumer price index for transport, consumer price index for fuel and lubricants, consumer price index for transport services. Bartlett’s sphericity criterion and the calculation of the adequacy of the Kaiser-Mayer-Olkin sample were used for the study. It was found that the largest variance has such components as price indices for transport, fuels and lubricants, the volume of foreign and domestic (wholesale and retail) trade, which total 83.1%. The analysis of factors according to the received calculations is made.A study of factor analysis of the development of the market of logistics services showed that the segment of freight and warehousing logistics is not significantly affected by indicators combined in the component that characterized the price indices for transport, transport services, etc., is changes in domestic and foreign trade are greater impact on changes in the volume of these segments, regardless of changes in prices for services and related goods in the market of logistics services. The selection of factors according to the proposed method allows to determine their influence, but does not fully clarify the mechanism of influence, so the direction of further research should be to identify hidden variables that determine the presence of statistical correlations.

scholarly journals Tests for Price Indices in a Dynamic Item Universe

2019 ◽  
Vol 35 (3) ◽  
pp. 683-697
Author(s):  
Li-Chun Zhang ◽  
Ingvild Johansen ◽  
Ragnhild Nygaard
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Scanner Data ◽  
Price Indices ◽  
Cost Of Living ◽  
Quality Change ◽  
Large Index ◽  
New Goods ◽  
Cost Of Living Index ◽  
Index Family

Abstract There is generally a need to deal with quality change and new goods in the consumer price index due to the underlying dynamic item universe. Traditionally axiomatic tests are defined for a fixed universe. We propose five tests explicitly formulated for a dynamic item universe, and motivate them both from the perspectives of a cost-of-goods index and a cost-of-living index. None of the indices that are currently available for making use of scanner data satisfies all the tests at the same time. The set of tests provides a rigorous diagnostic for whether an index is completely appropriate in a dynamic item universe, as well as pointing towards the directions of possible remedies. We thus outline a large index family that potentially can satisfy all the tests.

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