Journal Article10.1515/JBNST-2010-0606
Notes on Unit Value Index Bias
TL;DR: In this article, the authors present most of the known results on this bias and derive some new ones in a coherent framework using a simple identity from the statistics literature and show that disaggregation of a unit value into more homogeneous subgroups reduces the unit value bias.
read more
Abstract: It is often the case that the value of a number of somewhat similar units (e.g., automobiles of a certain general type) is divided by the number of units in order to form a unit value price and these unit value prices are compared over two periods in order to form a unit value price index. This unit value price index or Drobisch price index can then be compared with other standard index number formulae and the bias in the index can be determined. The present paper presents most of the known results on this bias (and derives some new ones) in a coherent framework using a simple identity from the statistics literature. A related question first considered by Parniczky (1974) is also considered: does disaggregation of a unit value into more homogeneous subgroups reduce the unit value bias? The answer seems to be: probably yes.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
The wrongs and rights of unit value indices
TL;DR: In this paper, the authors examine the use of unit value indices as surrogates for price relatives of product groups of exports and imports and show that for the aggregation of heterogeneous items, superlative price indices are best and unit values are biased.
47
•Posted Content
Alternative Approaches to Measuring House Price Inflation
TL;DR: This article used data on sales of detached houses in a small Dutch town over 14 quarters starting at the first quarter of 2005 in order to compare various methods for constructing a house price index over this period.
43
Failure of the Dodd-Frank Act
TL;DR: The Dodd-Frank Act has not resulted in significant economic growth and has increased transaction costs and compliance costs for both government agencies and financial services companies as discussed by the authors, and it is inefficient and inadequate as a response to the global financial crisis.
42
Measuring Globalization: Better Trade Statistics for Better Policy
TL;DR: The authors identify biases and gaps in national statistics, examine the magnitude of the problems they pose, and propose solutions to address significant biases and fill key data gaps in a two-volume set.
References
Axiomatic Price Index Theory: A Survey
TL;DR: In this article, a revue de la litterature sur la ''theorie axiomatique de l'indice des prix (et des quantites)» is proposed.
218
•Posted Content
Price and Quantity Index Numbers
Bert M. Balk
- 01 Jan 2008
TL;DR: The first comprehensive text on index number theory since Irving Fisher's 1922 The Making of Index Numbers as discussed by the authors was published, which covers intertemporal and interspatial comparisons; ratio-and difference-type measures; discrete and continuous time environments; and upper-and lower-level indices.
170