1. bookVolume 38 (2022): Issue 1 (March 2022)
    Special Issue on Price Indices in Official Statistics
Journal Details
License
Format
Journal
eISSN
2001-7367
First Published
01 Oct 2013
Publication timeframe
4 times per year
Languages
English
access type Open Access

Creative and Exhaustive, but Less Practical – a Comment on the Article by Diewert and Fox

Published Online: 29 Mar 2022
Volume & Issue: Volume 38 (2022) - Issue 1 (March 2022)<br/>Special Issue on Price Indices in Official Statistics
Page range: 291 - 293
Received: 01 Oct 2021
Accepted: 01 Nov 2021
Journal Details
License
Format
Journal
eISSN
2001-7367
First Published
01 Oct 2013
Publication timeframe
4 times per year
Languages
English
Abstract

The article by Diewert and Fox provides a comprehensive overview of challenges that NSOs face in producing the CPI in pandemic times by touching on many different fields. A focus is on the treatment of missing prices, where they propose different methods depending on the resources available to the NSO. However, some of the procedures proposed can be seen as being less practical like the use of reservation prices (which is also debatable from a theoretical point of view) and of alternative data sources for weights whose implementation supposedly takes longer than the pandemic itself. Overall, the article provides an important contribution for making CPI production more robust for similar crises in the future.

Keywords

Diewert, W.E. and R. Feenstra. 2019. Estimating the Benefits of New Products: Some Approximations. Discussion Paper 19 – 02, Vancouver School of Economics. Vancouver: University of British Columbia.10.3386/w25991 Search in Google Scholar

Groshen, E., B. Moyer, A. Aizcorbe, R. Bradley, and D. Friedman. 2017. “How Government Statistics Adjust for Potential Biases from Quality Change and New Goods in an Age of Digital Technologies: A View from the Trenches.” Journal of Economic Perspectives 31(2): 187–210. DOI: http://dx.doi.org/10.1257/jep.31.2.187.10.1257/jep.31.2.187 Search in Google Scholar

Hausman, J. 1996. “Valuation of New Goods under Perfect and Imperfect Competition.” In The Economics of New Goods, edited by T. Bresnahan, and R. Gordon: 207–248. Chicago: University of Chicago Press. Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo