scholarly journals Proposition of a hybrid price index formula for the Consumer Price Index measurement

Equilibrium ◽  
2020 ◽  
Vol 15 (4) ◽  
pp. 697-716
Author(s):  
Jacek Białek
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Value Added ◽  
Index Formula ◽  
Time Interval ◽  
Hybrid Index ◽  
Starting Point ◽  
Laspeyres Index ◽  
Research Period ◽  
Special Case

Research background: The Consumer Price Index (CPI) is a basic, commonly accepted and used measure of inflation. The index is a proxy for changes in the costs of household consumption and it assumes constant consumer utility. In practice, most statistical agencies use the Laspeyres price index to measure the CPI. The Laspeyres index does not take into account movements in the structure of consumption which may be consumers' response to price changes during a given time interval. As a consequence, the Laspeyres index can suffer from commodity substitution bias. The Fisher index is perceived as the best proxy for the COLI but it needs data on consumption from both the base and research period. As a consequence, there is a practical need to look for a proxy of the Fisher price index which does not use current expenditure shares as weights. Purpose of the article: The general purpose of the article is to present a hybrid price index, the idea of which is based on the Young and Lowe indices. The particular aim of the paper is to discuss the usefulness of its special case with weights based on correlations between prices and quantities. Methods: A theoretical background for the hybrid price index (and its geometric version) is constructed with the Lowe and Young price indices used as a starting point. In the empirical study, scanner data on milk, sugar, coffee and rice are utilized to show that the hybrid index can be a good proxy for the Fisher index, although it does not use the expenditures from the research period. Findings & Value added: The empirical and theoretical considerations con-firm the hybrid nature of the proposed index, i.e. in a special case it forms the convex combination of the Young and Lowe indices. This study points out the usefulness of the proposed price index in the CPI measurement, especially when the target index is the Fisher formula. The proposed general hybrid price index formula is a new one in the price index theory. The proposed system of weights, which is based on the correlations between prices and quantities, is a novel idea in the price index methodology.

scholarly journals Statistical Capacity Building of Official Statisticians in Practice: Case of the Consumer Price Index

2016 ◽  
Vol 32 (4) ◽  
pp. 827-848
Author(s):  
Tomi Deutsch
Keyword(s):  
Capacity Building ◽  
Price Index ◽  
Inflation Rate ◽  
Consumer Price Index ◽  
Academic Research ◽  
Professional Community ◽  
Index Formula ◽  
Methodological Issues ◽  
Welfare Benefits ◽  
Research Findings

Abstract This article focuses on the issue of statistical capacity building of official statisticians using the case of the consumer price index (CPI) as an illustrative example. Although used for indexation of salaries, pensions, and social welfare benefits, but also as an approximation of the general inflation rate, there are several unresolved methodological issues associated with CPI’s calculation. Apart from the choice among two alternative concepts, the challenge of how to include owner-occupied housing (OOH) in CPI has also not been adequately resolved yet. Analysis in the article is based on Slovenian data. The results show that accuracy of the CPI significantly improves if it is calculated using one of the superlative and symmetric formulas, and that it makes sense to include OOH in CPI using the total acquisitions approach. The analysis further indicates that the choice of the index formula for calculating CPI has a much greater impact on the CPI value than inclusion of OOH. Academic research findings such as these should not remain unknown to the wide professional community of official statisticians. Formal channels for knowledge transfer from academia to official statistics providers should be established to facilitate continuous statistical capacity building of official statisticians.

scholarly journals Examining the Effects of Food and Product Production Values and Production Added Value on Inflation Over the Years: Empirical Evidence for Turkey

2021 ◽  
Author(s):  
Isil Tellalbasi Menguc
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Wholesale Price ◽  
Value Added ◽  
Added Value ◽  
Production Index ◽  
Production Values ◽  
Negative Effect ◽  
Production Value ◽  
Positive Effect

In this study, it is aimed to examine the effects of food and product production values on inflation. In the study, the variables of the World Bank Country Reports between 1991-2019 Consumer Price Index, Wholesale Price Index, Food Production Index, Product Production Index and Production Value Added were used. According to the results obtained from the study, there is a statistically significant relationship between TUFE and TOFE and GUE, UUE and UKD variables (p <0.01). According to the results of controlled correlation analysis, the effects of food and product production indexes on consumer and wholesale inflation level are not statistically significant (p> 0.05). The effect of UKD and GUE parameters on inflation is statistically significant (p <0.05). Explanation power of both models is very high. According to the regression coefficients, UKD has a negative effect, and GUE has a positive effect. The results show that production has a positive effect on inflation, while production value added has a decreasing effect on consumer and wholesale prices. These results show that the production in our country is actually high cost and its added value is low.

scholarly journals Examining the Effects of Food and Product Production Values and Production Added Value on Inflation Over the Years: Empirical Evidence for Turkey

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Isil Tellalbasi Menguc ◽  
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Wholesale Price ◽  
Value Added ◽  
Added Value ◽  
Production Index ◽  
Production Values ◽  
Negative Effect ◽  
Production Value ◽  
Positive Effect

In this study, it is aimed to examine the effects of food and product production values on inflation. In the study, the variables of the World Bank Country Reports between 1991-2019 Consumer Price Index, Wholesale Price Index, Food Production Index, Product Production Index and Production Value Added were used. According to the results obtained from the study, there is a statistically significant relationship between TUFE and TOFE and GUE, UUE and UKD variables (p <0.01). According to the results of controlled correlation analysis, the effects of food and product production indexes on consumer and wholesale inflation level are not statistically significant (p> 0.05). The effect of UKD and GUE parameters on inflation is statistically significant (p <0.05). Explanation power of both models is very high. According to the regression coefficients, UKD has a negative effect, and GUE has a positive effect. The results show that production has a positive effect on inflation, while production value added has a decreasing effect on consumer and wholesale prices. These results show that the production in our country is actually high cost and its added value is low.

Prediksi Financial Distress Menggunakan Rasio Keuangan, Sensitivitas Makroekonomi, dan Intellectual Capital

2018 ◽  
Vol 10 (1) ◽  
pp. 16-33
Author(s):  
Dian Oktarina
Keyword(s):  
Intellectual Capital ◽  
Financial Distress ◽  
Price Index ◽  
Consumer Price Index ◽  
Value Added ◽  
Net Income ◽  
Working Capital ◽  
Current Ratio ◽  
Turnover Ratio ◽  
Equity Ratio

Penelitian ini bertujuan untuk melihat pengaruh rasio keuangan, indikator makroekonomi, dan intellectual capital terhadap financial distress. Rasio keuangan yang digunakan pada penelitian ini yaitu debt to equity ratio, total assets turnover ratio, current ratio, quick ratio, working capital ratio, net income to total assetsratio, dan cash ratio. Indikator makroekonomi yang digunakan pada penelitian ini adalah lending rate, Consumer Price Index (CPI), IHSG, inflasi, and kurs IDR/USD. Value Added Intellectual Coefficient (VAIC) digunakan untuk mengukur intellectual capital. Penelitian ini menggunakan sampel perusahaan manufaktur yang terdaftar di BEI mulai tahun 2012-2016. Penelitian ini menggunakan alat analisis regresi logistik untuk menguji hipotesis. Hasil penelitian ini menunjukkan bahwa inflasi, kurs IDR/USD, total assets turnover ratio, dan net income to total assets ratio berpengaruh negatif signifikan terhadap financial distress. Hal ini menunjukkan bahwa jika inflasi, kurs IDR/USD, total assets turnover ratio, dan net income to total assets ratio meningkat, maka financial distress menurun.

scholarly journals Basic Statistics of Jevons and Carli Indices under the GBM Price Model

2020 ◽  
Vol 36 (4) ◽  
pp. 737-761
Author(s):  
Jacek Białek
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Index Formula ◽  
Elementary Level ◽  
Mean Squared Errors ◽  
Elementary Formula ◽  
Labor Statistics ◽  
Level Of Aggregation ◽  
The Difference ◽  
Bureau Of Labor Statistics

AbstractMost countries use either the Jevons or Carli index for the calculation of their Consumer Price Index (CPI) at the lowest (elementary) level of aggregation. The choice of the elementary formula for inflation measurement does matter and the effect of the change of the index formula was estimated by the Bureau of Labor Statistics (2001). It has been shown in the literature that the difference between the Carli index and the Jevons index is bounded from below by the variance of the price relatives. In this article, we extend this result, comparing expected values and variances of these sample indices under the assumption that prices are described by a geometric Brownian motion (GBM). We provide formulas for their biases, variances and mean-squared errors.

Applying the Input-output Price Model to Identify Inflation Processes

2021 ◽  
Author(s):  
Michał Przybyliński ◽  
Artur Gorzałczyński
Keyword(s):  
Open Economy ◽  
Price Index ◽  
Consumer Price Index ◽  
Price Formation ◽  
Input Output ◽  
Price Model ◽  
Output Price ◽  
Ex Post ◽  
Starting Point ◽  
Overall Performance

Abstract We try to examine the potential of input-output price model to identify mechanisms of price formation and transmission. Contrary to previous research focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study the historical values of the commonly used Consumer Price Index were decomposed according to the classic input-output price model for an open economy. A sequence of ex-post simulations under various assumptions was used to identify the sources of inflation. This study required the use of input – output tables in current and previous year’s prices. The proposed method of decomposition might be a starting point to create a framework for studying different aspects of inflation process.JEL: C67, E31, E37

Dampak Penerapan Perbankan Syari’ah Terhadap Pertumbuhan Ekonomi Negara: Kajian Perbandingan Malaysia dan Indonesia

2017 ◽  
Vol 1 (1) ◽  
pp. 37
Author(s):  
Hansen Rusliani
Keyword(s):  
Gross Domestic Product ◽  
Response Function ◽  
Price Index ◽  
Vector Autoregression ◽  
Consumer Price Index ◽  
Domestic Product

Penelitian ini bertujuan untuk mengetahui dampak perbankan syari’ah terhadap pertumbuhan ekonomi di Indonesia dan Malaysia. Data yang digunakan dalam penelitian ini merupakan data primer (interview) dan data sekunder dalam bentuk bulanan yang diperoleh dari Badan Pusat Statistik Ekonomi dan Keuangan Indonesia Bank Indonesia (SEKI-BI) dan Statistik Perbankan Syari’ah Bank Indonesia (SPS-BI) serta data dari Bank Negara Malaysia dan Departemen Statistik Malaysia dalam periode waktu kurun waktu 16 tahun, 2000 sampai dengan 2015. Observasi penelitian dilakukan di Indonesia dan Malaysia untuk memperkaya analisis. Penelitian ini menggunakan Vector Autoregression (VAR), Uji Kointegrasi serta dikombinasikan dengan Response Function (IRF) dan Decomposition (FEVD) untuk melihat interaksi antara faktor makro ekonomi dengan pembiayaan dalam jangka panjang. Adapun variabel yang digunakan adalah total pembiayan syari’ah (Total Syari’ah Financing) dan Gross Domestic Product (GDP) sebagai representasi pertumbuhan ekonomi. Untuk tambahan variabel digunakan Consumer Price Index (CPI) sebagai representasi tingkat inflasi. Hipotesis penelitian yaitu terdapat pertumbuhan ekonomi setiap tahunnya dikedua negara tersebut pasca krisis moneter.

The 2018 revision of the Consumer Price Index geographic sample

2016 ◽  
Author(s):  
Steven Paben ◽  
William Johnson ◽  
John Schilp
Keyword(s):  
Price Index ◽  
Consumer Price Index
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