Journal Article10.1080/07350015.1999.10524805
Using Scanner Data to Construct CP1 Basic Component Indexes
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TL;DR: In this article, the authors considered how scanner data could be used in constructing component indexes for the US Consumer Price Index (CPI) and found that some aggregation of prices into "unit-value" averages is necessary for practical reasons and to avoid bias.
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Abstract: This article considers how scanner data could be used in constructing component indexes for the US Consumer Price Index One product, coffee, in two cities generates over 18 million observations in just over two years, so coping with the sheer volume of data would be a challenge Some other findings are (1) some aggregation of prices into “unit-value” averages is necessary for practical reasons and to avoid bias, (2) chained Laspeyres indexes are very high, (3) “modified” Laspeyres indexes have some upward bias but much less than a true Laspeyres index, (4) Fisher ideal or modified Edgeworth indexes perform well, and (5) aggregating prices across outlets to form city-level unit values reduces the discrepancies between index-number formulas
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Citations
Measurement Error in the Consumer Price Index: Where Do We Stand?
David E. Lebow,Jeremy B. Rudd +1 more
TL;DR: This article found that the CPI currently overstates the rate of change in the cost of living by about 0.9 percentage point per year, with a confidence interval ranging from 0.3 to 1.4 percentage points.
High-Frequency Substitution and the Measurement of Price Indexes
TL;DR: In this article, the authors investigated the use of high-frequency scanner data to construct price indexes and found that the chained index has a pronounced upward bias for most regions of the U.S. This upward bias can be caused by consumers purchasing goods for inventory.
Approximating the Cost-of-Living Index for a Storable Good
TL;DR: In this article, a cost-of-living index using a dynamic structural model for two storable product categories is proposed, where regime shifts to higher or lower retail prices are observed.
Pitfalls of using unit values as a price measure or price index
TL;DR: This article showed that the use of unit values as a price regressor in an aggregate demand model will misspecify the model even though the functional form of the demand model is correct.
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Accounting for the effects of new and disappearing goods using scanner data
TL;DR: In this article, the authors used the Constant Elasticity of Substitution cost function to calculate the exact cost-of-living index even when the domain of goods is changing over time.
26
References
Exact and superlative index numbers
TL;DR: In this paper, the authors rationalize certain functional forms of index numbers with functional forms for the underlying aggregator function, and show that a certain family of index number formulae is exact for the "flexible" quadratic mean of order r aggregator functions.
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New product varieties and the measurement of international prices
TL;DR: In this article, the authors demonstrate how to incorporate new product varieties into a constant-elasticity-of-substitution aggregate of import prices, which is applied to U.S. imports of six disaggregate manufactured goods.
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Do Household Scanner Data Provide Representative Inferences from Brand Choices: A Comparison with Store Data:
TL;DR: The authors find statistical support for the hypothesis that panelist households are not representative, whether household heterogeneity is or is not accommodated.
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The commodity substitution effect in CPI data, 1982-91
Patrick C. Jackman,Ana Aizcorbe +1 more
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