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Index
References are to chapter and paragraph or appendix numbers (not to pages). The notation (g) indicates an
entry in the glossary or glossary appendix; a (t), (f), or (b) appended to paragraph numbers indicates a table,
figure, or box adjoining relevant text; addition of “*” (for example, (t*)) indicates that the table, etc., is located immediately after, but is not relevant to, that paragraph (the paragraph number is merely a locator).
ABS. See Australian Bureau of Statistics
Absolute index number, 16.4
Accounting
current cost accounting, 2.57
Accrual accounting, 5.9
Accrual recording, (g)
Actual consumption expenditures, 14.29
Actual final consumption of households, 14.30
Actual market transaction prices, 1.328. See also
Transaction price
Additive percentage change decompositions, 19.24–
19.26(t)
Additive quality adjustment, 7.76(t)
Additivity, (g)
Additivity test, 1.77, 16.65–16.76
Administrative data, 1.254, 4.41, 4.60
Advisory committees, 13.75–13.77
Advisory groups, 1.278
Aggregates, (g). See also Elementary aggregates;
Value aggregates
defined, 20.7
Aggregation, 1.120–1.122, (g)
consistency, 1.265
deflation of value added, 18.39–18.45
double deflation method for constructing real value
added, 18.49–18.56
of establishment deflators into national valueadded deflator, 18.57–18.60
industry, 2.60
intermediate input price, 18.39–18.45
Laspeyres formula, 18.32–18.38
macroeconomic, 2.61
national intermediate input price index, 18.24–
18.27
national output price index, 18.4–18.23
national value-added deflator, 18.28–18.31
national value-added deflator compared with finaldemand deflator, 18.61–18.80
output price, 18.39–18.45
over establishments, 18.4–18.31
overview, 18.1–18.3
Paasche formula, 18.32–18.38
stage of production, 2.64
structure, 9.9–9.10
superlative index, 18.32–18.38
two-stage, 18.32–18.38
value-added deflators, 18.39–18.56
Agriculture industry
annual chaining, 10.29–10.30
annual price index, 10.27–10.28
decomposition, 10.33–10.34
Farm Product Price Index, 10.13–10.17
linking at the annual index, 10.31–10.32
monthly price changes, 10.33–10.41
product prices, 3.43
seasonal baskets, 10.18–10.26
time reference, 10.43
treatment of products, 10.5, 10.11–10.44
use of receipts in the absence of quantities sold,
10.42
value-added deflators, 19.33–19.36(t)
Algorithms for data editing, 12.52–12.53
Annual chaining, 1.272, 1.377, 9.143–9.144, 10.29–
10.30
Annual indices. See Seasonal products
Annual weights, 1.57, 15.34–15.65
ANZIC. See Australian and New Zealand Standard
Industrial Classification
Arithmetic average of price relatives, 1.142–1.144
Arithmetic mean, weighted, 19.14
Arithmetic-type midyear indices, 19.23–19.26(t)
Artificial data set
additive percentage change decompositions,
19.27–19.29(t)
final-demand data set, 19.6–19.22(t)
industry data set, 19.30–19.35(t)
midyear indices, 19.23–19.26(t)
national intermediate input price index, 19.52–
19.55(t)
national output price index, 19.48–19.51(t)
national two-stage aggregation, 19.61–19.65(t)
national value-added deflator, 19.56–19.60(t)
overview, 19.1–19.5
price indices for final-demand components, 19.6–
19.22
value-added deflators, 19.36–19.47(t)
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Producer Price Index Manual
638
Asymmetrically weighted price index, 19.12(t)
Auditors
backchecking, 12.33–12.38
monitoring data collection, 12.29–12.32
process auditing, 12.33–12.38
role of, 12.27–12.28, 12.39–12.41
Australian and New Zealand Standard Industrial Classification, 1.185, 3.72
Australian Bureau of Statistics, 10.45, 12.81
Average of price relatives, 1.141, 16.7–16.9
Average prices, 1.179, 3.25–3.29, 6.6, 6.12
Axiomatic approach, (g)
additivity test, 1.77, 16.65–16.76
bilateral price indices, 16.31–16.76, 16.97–16.132
elementary indices, 1.147–1.150, 9.25–9.30(t),
20.31–20.44
Fisher ideal index and test approach, 16.56–16.59
homogeneity tests, 16.39–16.44, 16.102–16.108
invariance tests, 16.45–16.49, 16.109–16.114
limitations, 1.74
mean value tests, 16.50–16.52, 16.115
monotonicity tests, 16.53–16.55, 16.116
overview, 16.1–16.2
ranking of indices, 1.71–1.79, 20.41–20.44
symmetry tests, 16.45–16.49, 16.109–16.114
test performance, 16.60–16.64
Törnqvist-Theil price index, 16.123–16.132
unilateral price indices, 16.11–16.30
uses of, 1.61–1.70
weighting tests, 16.117–16.122
from implicit quality adjustment, 7.99(t)
from inappropriate use of a PPI, 11.21–11.26
lower-level substitution bias, 11.43–11.44
new establishment bias, 11.46–11.47
new goods bias, 11.38
non-response bias, 5.6
nonsampling bias, 11.16–11.17
omitted variable bias, 21.93
PPI valuation and, 11.27
quality change bias, 11.34–11.37
response bias, 11.33
sampling bias, 11.11–11.15
sampling bias on initiation, 11.28–11.29
sources of, 11.1–11.9(t)
substitution bias, 1.88, 11.40–11.47, 17.24–17.25
temporarily missing bias, 11.39
undercoverage bias, 11.24
unit value bias, 11.45
upper-level substitution bias, 11.41–11.42
Bilateral index number theory, 16.3, 16.5
Bilateral price indices. See Axiomatic approach
Book price, 1.178, 1.328, 6.22, (g). See also List price
Bouncing, 1.261, (g)
price bouncing, 1.261
price bouncing test, 20.33
Bridge construction industry, 10.158–10.160
Bulletins, 13.47
Business census, 1.245–1.246, 4.33–4.34, 4.53–4.55
Business register, 1.252–1.253, 4.39–4.40, 4.56
Buyer coverage, 3.4–3.7
Backchecking, 12.33–12.38
Backward linking, 1.271, 9.118
Balancing items, 14.21
Banking industry. See Commercial banking industry
Base period, (g). See also Index reference period;
Price reference period; Weight reference period
Base quality adjustment, 7.77
Base-weighted index, (g)
Base year, 15.34
Base-year revenue shares, 15.55
Basic information level, 20.9
Basic price, 1.293, 2.37, 14.19–14.20, (g)
Basket, (g)
Basket price index, 9.76, (g appendix). See also Fixed
basket price index; individual indices
Bean and Stine Type C index, 22.11, 22.87–22.89
Benchmarking, 12.81
Bias, (g). See also Error
concepts of a true or good index, 11.18–11.20
due to product replacement and new goods, 1.301
dynamic universe, 11.30–11.32
Calculation of price indices
elementary indices 9.6–9.74
higher-level indices 9.75–9.146
Canada
Farm Product Price Index, 10.13–10.17
WPI, 2.13
Capital account, 14.16. See also System of National
Accounts
Capital formation, 14.39–14.40(t)
Carli price index, 9.70, 16.6, 16.77, 16.79, 19.8–
19.11, 20.17, (g)
axiomatic approach, 1.149, 20.44
compilation of elementary price indices, 9.18–
9.38(t)
economic approach, 1.163
elementary index, 20.17, 20.30, 20.43, 20.62,
20.83
final-demand commodities, 19.8(t)
relationships with other elementary indices, 1.143
treatment of missing prices, 9.52–9.54(t)
treatment of missing products, 9.55–9.63(t)
uses of, 1.82
Index
Carruthers, Sellwood, Ward, Dalén index, 1.165,
20.20, 20.30, (g)
Carryforward, 7.109, 9.49, 9.182, 22.78–22.84(f)(t),
(g)
Censuses, 1.245–1.246, 4.33–4.34, 4.53–4.55
Central Product Classification, 1.187, 3.73–3.75, 4.18,
(g)
Chain index, 1.56–1.59, 1.113, 9.40–9.45(g)
annual chaining, 1.272, 1.377, 9.143–9.144,
10.29–10.30
calculation of, 9.114–9.116(t)
compared with fixed-base indices, 15.77–15.98
final-demand commodities, 19.10–19.11(t)
Laspeyres index, 1.58–1.59
linking, 1.56
long-term links, 9.131–9.134
Lowe index, 1.57–1.58
midyear price index, 19.25–19.26(t)
month-to-month index, 9.19, 22.31–22.34
quality adjustment, 7.192–7.198
sampling and, 8.11–8.14
short-term links, 9.131–9.134
using linking coefficients, 9.117–9.118(t)
Chain linking, 1.377, (g and g appendix)
introduction of new weights, 9.107–9.109
Chain-linking bias, (g)
Characteristics, (g). See also Product specification
c.i.f. price, 14.42, (g)
Circularity, 20.36, (g)
Circularity test, 15.89–15.90, 15.93–15.97, 16.113,
16.135, 20.37
Class mean imputation, 1.229, 7.105–7.106
Classification
function of, 1.184
industrial, 1.185, 2.60, 3.66–3.72
industry aggregation, 2.60
international standard systems, 1.185, 1.187, 3.65
product classification, 1.186–1.187, 3.73–3.79
production activity, 3.66–3.72
role of, 1.184, 3.58–3.64
Classification of Individual Consumption by Purpose,
20.7
Classification of Products by Activity, 1.185, 3.76–
3.77, 4.18, (g)
Classification system, 1.173, 1.184–1.187, 4.17–
4.20(t)
Clothing industry
treatment of products, 10.8, 10.45–10.58
Coefficients. See also Linking coefficients
hedonic quality adjustment, 7.136–7.137, 7.144
COICOP. See Classification of Individual Consumption by Purpose
COLI. See Cost-of-living index
Collection. See Price collection
Collectors. See also Auditors
training requirements, 12.68–12.71
Commensurability test, 1.62, 9.25, 16.46, 16.135,
20.37, (g)
Commercial banking industry
output of, 10.200–10.217
system of price statistics, 14.13–14.15(b)
treatment of products, 10.9, 10.199
U.S. PPI commercial bank index, 10.218–10.238
Commodities, (g)
Commodity analysis, 2.62
Commodity reversal test, 16.45, 16.109, 16.135, (g)
Comparable products
quality adjustment methods, 7.73
Comparable replacement, 7.25, 7.107, 7.154, 7.200
Compensation of employees, 14.64(t), (g)
Compilers
training requirements, 12.68–12.71
Component, (g)
Component pricing, 6.83, 10.125
Computer industry
treatment of products, 10.7, 10.80–10.99
Computers
hedonic adjustment approach regression data, 7.1
(appendix)
hedonic method adjustments, 7.127–7.134
option cost adjustments, 7.123–7.125
price index, 10.80
quality adjustment issues, 7.61–7.65
Conditional cost function, 17.61
Confidentiality, 6.107, 13.61–13.64
Consistency in aggregation, (g)
Constant elasticity of substitution index, (g)
Constant prices test, 16.36, 16.101, (g)
Constant quantities test, 16.36–16.38, (g)
Construction industry, 3.2
bridges, 10.158–10.160
house building, 10.147–10.157
nonbuilding construction, 10.158–10.166
nonresidential building, 10.149–10.157
residential building other than houses, 10.149–
10.157
roads, 10.158–10.160
treatment of products, 10.6, 10.139–10.146
Consumer price index, 1.97, 1.117, 2.30–2.31, 14.53–
14.54(t)
Consumer side
hedonic prices and, 21.13–21.17
Consumption of fixed capital, (g)
Continuity, 16.35, 16.101, 16.135, 20.32, (g)
Continuous time Divisia index, 15.73–15.76
Contract escalation, 2.2, 2.53, 3.63, (g). See also Indexation of contracts
Contract price, 1.178, 3.19–3.21, 10.121–10.124, (g)
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Producer Price Index Manual
Core inflation, 13.27–13.29
Corporate services price index, 3.3
Cost-of-living index, 2.7, (g)
Country product dummy method, 20.77
Coverage, 1.294–1.299, 11.23–11.26, (g)
buyer, 3.4–3.7
geographic, 3.45–3.48
industrial, 1.176, 2.41, 3.1–3.3
population, 1.175–1.177, 3.1–3.14
price, 1.178–1.181, 3.15–3.44
product, 1.176, 5.36, 14.47, 14.59
CPA. See Classification of Products by Activity
CPC. See Central Product Classification
CPI. See Consumer price index
CPI Manual, 2.30–2.33
Cross-subsidization, 3.33
CSPI. See Corporate services price index
CSWD index. See Carruthers, Sellwood, Ward, Dalén
index
Current cost accounting, 2.57, 5.9, (g)
Current period, (g)
Current period quality adjustment, 7.77
Current-weighted index, (g). See also Paasche price
index
Customs records, 1.256, 4.44
Cut-off sampling, 1.192, 5.30–5.33, 5.74–5.79, (g)
Data. See also Dissemination issues
administrative, 1.254, 4.41, 4.60
business censuses, 1.245–1.246, 4.33–4.34, 4.53–
4.55
checking by impact, 9.171–9.173
collection, 1.188–1.208, 6.35, 6.42–6.65
correcting, 9.174–9.178
data output checking, 9.171–9.173
editing, 1.273, 9.147–9.179
electronic data, 3.55, 6.58, 6.59
establishment censuses, 1.245–1.246
identifying errors and outliers, 9.154–9.155
industry surveys, 1.247–1.249, 4.35–4.36
missing price observations, 9.180–9.185
nonstatistical checking, 9.156–9.162
registers, 1.252–1.253, 4.39–4.40, 4.56
statistical checking, 9.163–9.170
treatment of outliers, 9.179
verifying, 9.174–9.178
Decomposition
agriculture industry, 10.33–10.34
Fisher price index, 19.24–19.26(t)
of index changes, 9.135–9.138(t)
of value aggregates, 15.7–15.18
Van Ijzeren decomposition factor, 19.25–19.26(t)
Deflation, 1.10, 1.121, 2.53, 3.10, 15.10, (g)
640
Deflation of value added, 18.39–18.45
Delinquency follow-up, 6.102–6.104
Demand side
hedonic prices and, 21.13–21.17
Determinateness as to prices test, 16.130
Diagnosis Related Group, 10.298–10.311
Direct comparison, 7.73
Direct index, 9.63
Directed replacements, 8.31–8.37
Disaggregation, 4.57–4.58, 10.168. See also Ranking
method
Disappearing goods, 8.36, 8.39
Disappearing items
quality change, 21.2–21.11
Disaster Recovery Plan, 12.63–12.64
Discounts, 3.38–3.42, 6.67–6.80, (g)
Dispersion index report, 12.50
Dissemination issues, 1.278–1.281, 1.301, 1.358–
1.366, 13.1–13.3
access to data, 13.57–13.60
confidentiality, 13.61–13.64
electronic release, 13.65–13.68
Internet release, 13.65–13.68
timeliness of release and data accuracy, 13.53–
13.56
timing of release, 13.52
Dissemination Standards Bulletin Board, 12.75, 13.50
Divisia approach, 1.60, 2.8, (g)
discrete approximations, 15.66–15.76
relationship with economic approach, 17.100–
17.105
Domain, (g)
Double counting, 4.14
Double deflation, (g)
aggregation, 1.121
constructing real value added, 18.49–18.56
value-added index, 1.122
Double logarithmic formulation, 7.133, 21.83
Double universe, 8.4, 8.52, 21.2
DRG. See Diagnosis Related Group
Drift, 1.283, 1.377, 9.74, (g)
Drobisch price index, 15.19, 19.16–19.17, (g)
final-demand commodities, 19.14(t)
DRP. See Disaster Recovery Plan
Dummy variables on time, 21.55–21.57
hedonic functions, 7.170–7.172
Durable input, (g)
Dutot index, (g)
compilation of elementary price indices, 9.18–
9.30(t)
Dutot formula, 1.145, 20.16, 20.83
economic approach, 1.158
elementary index, 20.16, 20.30, 20.42, 20.57–
20.61
Index
relationships with other elementary indices, 1.144–
1.145
treatment of missing prices, 9.52–9.54(t)
treatment of missing products, 9.55–9.63(t)
uses of, 1.63–1.64
Dynamic universe, 8.48–8.49, 11.30–11.32, 21.6
E-mail
price data collection, 6.60
ECI. See Employment Cost Index
Economic approach, (g)
allowing for substitution, 1.116
approximations to superlative indices, 17.88–17.99
data requirements, 1.114–1.115
elasticity of substitution, 1.116
elementary indices, 1.151–1.167, 9.31–9.39,
20.45–20.55
estimating theoretical output indices, 1.99–1.103
Fisher ideal index, 17.27–17.31, 17.38–17.42
Fisher-Shell output index, 17.15–17.60
intermediate input indices, 1.117–1.118, 17.61–
17.76
Lloyd-Moulton index, 1.116, 9.70,
midyear indices, 17.88–17.99
overview, 1.88–1.93, 17.1–17.14
relationship with Divisia approach, 17.100–17.105
representativity bias, 1.110–1.113
revenue maximizers, 1.87–1.88, 1.96
substitution bias, 1.88
superlative indices, 1.104–1.109, 17.43–17.60
theoretical output index, 1.94–1.98
Törnqvist index as approximation to output index,
17.32–17.37
value-added deflators, 1.117–1.119, 17.77–17.87
Economic theoretic index, 1.88, 1.91–1.92. See also
Theoretical output price index
Economically significant prices, (g)
Edgeworth-Marshall cross, 10.35–10.40
Edgeworth price index, (g)
EDI. See Electronic data interchange
Editing, 1.335–1.338, 9.147–9.179, (g)
EFQM. See European Foundation for Quality Management Excellence Model
Elasticity
of demand 15.57
of substitution, 1.44, 1.116, 17.38
Electronic commerce, 1.183, 3.12–3.14, 3.53–3.55
Electronic data capture, 6.58
Electronic data interchange, 3.55
Electronic data transfer, 6.59
Elementary aggregates, (g). See also Value aggregates
adding items, 8.46–8.47
aggregation structure, 9.9–9.10
axiomatic approach, 9.25–9.30(t)
chained index, 9.40–9.45
change in price index, 8.40
classification system, 4.19–4.20(t)
compilation of elementary price indices, 1.257–
1.266, 9.16–9.24(t)
composition of, 9.7–9.8
consistency in aggregation, 9.46–9.47
coverage of weights, 4.28–4.31
deleting items, 8.46–8.47
direct index, 9.40–9.45
economic approach, 9.31–9.39
heterogeneity of products, 1.137–1.138
heterogeneous, 1.160–1.167
homogeneous products, 1.155–1.159
introduction of new aggregates, 9.119–9.121
missing price observations, 9.48–9.63
price index calculation, 9.6–9.74
representative products, 1.136
revenue weights, 1.133–1.134
sources for weights, 4.32–4.46
treatment of missing prices, 9.49–9.54(t)
treatment of missing products, 9.55–9.63(t)
types of, 20.7
weighting, 1.139–1.140
weights within elementary aggregates, 9.11–9.15
Elementary index number formula, 20.11, 20.15–
20.20, 20.83
Elementary price index, 1.133–1.167, (g). See also
Elementary aggregates
axiomatic approach, 1.147–1.150, 20.31–20.44
calculation of, 1.260–1.266, 9.16–9.24(t)
economic approach, 1.151–1.167, 20.45–20.55
ideal elementary indices, 20.7–20.14
numerical relationships between indices, 20.24–
20.30
overview, 20.1–20.6
relationships between formulas, 1.141–1.146
revenue weights, 1.133–1.134
sampling approach, 20.56–20.74
stochastic approach, 20.75–20.83
used in practice, 20.15–20.23
Employment Cost Index, 14.64
Enterprise, 14.21, (g)
Enterprise surveys, 1.247–1.249, 4.35–4.36
Equilibrium
hedonic prices, 21.22–21.23
Error, (g). See also Bias
concepts of a true or good index, 11.18–11.20
coverage of PPIs, 11.23–11.26
detection of, 9.148–9.149
dynamic universe, 11.30–11.32
identifying, 9.154–9.155
from inappropriate use of a PPI, 11.21–11.26
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Producer Price Index Manual
Error (continued)
nonsampling error, 11.16–11.17
PPI valuation and, 11.27
response error, 11.33
sampling error, 5.10, 11.11–11.15, 11.28–11.29
sources of, 11.1–11.9(t)
Escalated contract prices, 10.123. See also Contract
escalation
Establishment census, 1.245–1.246. See also Business
census
Establishments, 1.182, (g)
aggregation, 18.4–18.23
disappearance of, 8.38
economic approach, 17.2
institutional units, 14.14–14.15
intermediate input price index, 17.61–17.76
introducing new samples, 5.89–5.95
recruiting, 5.73
revenue function, 18.5
selecting products and transactions, 5.74–5.79(t)
selection of, 5.66–5.72(t)
value-added deflator, 17.77–17.87
Estimation, 11.17. See also Calculation of price
indices
Estimator, 11.11
EU. See European Union
European Foundation for Quality Management Excellence Model, 12.82–12.84, 12.87–12.88
European Union
Statistical Office of the European Communities,
6.16
Eurostat Classification of Products by Activity, 1.187,
3.76–3.77
Evolutionary goods, 1.242, 4.62–4.64, 8.20, 8.27,
8.31, 21.73–21.76, (g)
Exact hedonic index, 21.63–21.69
Excise duty, 2.47
Expert judgment, 7.111–7.112
Explicit quality adjustment, 1.211, 1.217, 1.232–
1.237, 7.110–7.151, 21.5
Explicit weights, 1.305, 4.48–4.52
Export Price Index, 1.177, 2.38, 14.2, 14.53–14.54(t)
Export prices, 2.48, 3.10–3.11, 3.45–3.48
External goods and services account, 14.16
External trade, 14.41–14.42(t)
Factor reversal test, 1.75–1.76, 16.59, (g)
Factory gate price, 2.42, (g)
Farm gate price, 3.43, (g)
Farm Product Price Index, 10.13–10.17
FEPI. See Final expenditure price index
Final demand, 2.59, 3.5–3.6, 14.11
Final-demand data set, 19.6–19.22(t)
642
Final-demand deflator, 18.61–18.80
Final expenditure price index, 2.51, 2.65, (g)
Financial institutions. See Commercial banking
industry
FIOPI. See Fixed-input output price index
Fisher, Irving, 2.5–2.6
Fisher cross, 10.38
Fisher ideal price index. See also Fisher price index
as average of observable bounds, 17.27–17.31
final-demand commodities, 19.16(t)
overview, 17.38–17.42
test approach, 16.56–16.59
Fisher price index, (g)
additive percentage change decompositions,
19.27–19.29(t)
annual chain-link index, 22.37–22.45(t)
as average of Paasche and Laspeyres indices,
15.19–15.24
chained rolling-year index, 22.49–22.54(f)(t)
defined, 1.51
Fisher formula, 1.51, 15.19, 16.56
hedonic output price index, 21.45
midyear price indices, 19.24–19.26(t)
national Fisher intermediate input price index,
18.26
national Fisher output price index, 18.21
relationship with Lowe index, 1.39–1.40
superlative index, 1.102, 1.104–1.109
year-over-year index, 22.19–22.35(t)
Fisher-Shell output price index, 17.15–17.37
Fixed-base price index
compared with chain indices, 15.77–15.98
final-demand commodities, 19.8(t)
midyear indices, 19.23–19.26(t)
Fixed-basket price index, 15.3–15.4, (g and g
appendix)
chain index, 1.56–1.59
Fisher index, 15.19–15.24
interrelationships, 1.36–1.41
linking, 1.55–1.56
pure price index theory, 15.25–15.32
symmetric averages, 15.19–15.33
Walsh index, 15.25–15.32. See also Walsh price
index
Fixed basket test, 16.36, (g)
Fixed-input output price index, (g)
origins of, 1.13
quality adjustment, 7.44–7.51, 7.55–7.57
theoretical, 1.91–1.92, 15.101
Fixed-weight price index, (g)
Fleetwood, William, 2.3
Flexible functional form, 1.101, 17.85, 18.15
fob price. See Free on board price
FOIPI. See Fixed-output input price index
Index
Formula approximation error, 20.12
Forward linking, 1.271, 9.117
FPPI. See Farm Product Price Index
Free on board price, 14.42, (g)
Fundamental Principles of Official Statistics, 13.3,
13.48
GDDS. See General Data Dissemination System
GDP. See Gross domestic product
GDP deflator, 14.62–14.63, 14.67. See also Valueadded deflator
Geary-Khamis quantity index, 1.77
General Data Dissemination System, 13.50–13.51
General government, 14.13–14.15(b)
General Industrial Classification of Economic Activities within the European Communities, 1.185,
3.67(t), 4.18, 20.7, (g)
Geographic coverage, 3.45–3.48
Geometric average of price relatives, 1.142–1.144,
4.52
Geometric Laspeyres price index, 1.46–1.49, 9.33, (g)
for elementary aggregates, 9.65–9.66
final-demand commodities, 19.12(t)
seasonally adjusted, 22.90–22.97(t)
Geometric mean, 1.83, 9.18, 15.29, 16.56, 16.128,
17.34, 18.18, 19.14(t), 20.20
Geometric Paasche price index, 1.46–1.49, (g)
final-demand commodities, 19.12(t)
Geometric-type midyear indices, 19.23–19.26(t)
Geometric Young index, 1.46–1.49
Globalization
impact of, 1.183, 3.12–3.14
Goods, (g)
Goods-producing sectors, 3.1
Gross domestic product
international comparisons, 14.66
nominal, 17.1
production and expenditure approaches, 14.11
production approach, 1.93
Gross output index, 1.290, 2.44
Gross sector output, (g)
Gross value added, (g)
Harmonic average, 20.19
Harmonic average of price relatives, 1.142–1.143,
9.68
Harmonic elementary index, 20.19–20.20, 20.30,
20.62, 20.83
Harmonic mean
weighted, 15.15, 15.38, 19.14, 20.80
Harmonic mean of price relatives, 1.142–1.143, 9.68,
(g)
Harmonic mean price index, (g). See also Harmonic
mean
Harmonised Indices of Consumer Prices, 2.25
Harmonized Commodity Description and Coding
System, 3.73
Hedonic analysis, 1.235–1.237
Hedonic index, 7.168–7.191
dummy variables on time, 21.55–21.57
exact hedonic index, 21.63–21.69
hedonic regressions, 21.55–21.57
new goods and services, 21.72–21.76
period-on-period hedonic indices, 21.58–21.62
sampling and, 8.11–8.14
superlative index, 21.63–21.69
theoretical characteristics price indices, 21.53–
21.54
unweighted hedonic index, 21.70–21.71
unweighted index number formula, 21.70–21.71
uses of, 21.52
Hedonic method, (g)
coefficients, 7.136–7.137, 7.144
difference between hedonic and matched indices,
7.189–7.191
dummy variables on time, 7.170–7.172
hedonic price indices, 7.168–7.191
implementation of, 7.138–7.145
indirect adjustment, 7.145
limitations of, 7.146–7.151
period-on-period indices, 7.173–7.178
predicted vs actual, 7.139–7.141
predicted vs predicted, 7.142–7.144
principles of, 7.126–7.135(f)(t)
regression data, 7.1 (appendix)
superlative and exact hedonic indices, 7.179–7.188
Hedonic prices
alternative theoretical formulation, 21.33–21.48
consumer side, 21.13–21.17
demand side, 21.13–21.17
equilibrium, 21.22–21.23
imperfect competition, 21.49–21.51
implicit markets and, 21.12–21.51
items as tied bundles of characteristics, 21.12(f)
markups, 21.49–21.51
meaning of, 21.24–21.32
model price functions, 21.34
producer side, 21.18–21.21
supply side, 21.18–21.21
Hedonic regressions, 21.8, 21.12, 21.55–21.57
changing tastes and technology, 21.85
econometric issues, 21.77–21.93
functional form, 21.81–21.84
identification and appropriate estimators, 21.78–
21.80
multicollinearity, 21.91–21.92
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Producer Price Index Manual
Hedonic regressions (continued)
omitted variable bias, 21.93
weighting, 21.86–21.90
Heterogeneity of products, 1.137–1.138
HICPs. See Harmonised Indices of Consumer Prices
Hidden economy, (g)
High inflation
price collection issues, 6.25–6.27
High-technology sectors
quality adjustment, 7.161–7.198
Higher-level index, (g)
alternatives to fixed weight indices, 9.139–9.146
calculation of, 1.267–1.268, 9.75–9.146
chain linking, 9.107–9.109
chained index calculation, 9.114–9.116(t)
chaining indices using linking coefficients, 9.117–
9.118(t)
data editing, 9.147–9.185
decomposition of index changes, 9.135–9.138(t)
factoring the Young index, 9.94–9.96
frequency of reweighting, 9.110–9.113
introducing new elementary aggregates, 9.119–
9.121
introducing new goods, 9.124–9.130
introducing new higher-level indices, 9.122–9.123
introducing new weights, 9.107–9.109
long-term links, 9.131–9.134
Lowe index, 9.89–9.93
partial reweighting, 9.124–9.130
PPIs as weighted averages of elementary indices,
9.78–9.96(t)
price-updating from weight reference period, 9.97–
9.106(t)
production and maintenance of, 1.269–1.272
short-term links, 9.131–9.134
target indices, 9.75–9.77
Young index, 9.89–9.96
Homogeneity tests, 16.39–16.44, 16.102–16.108,
16.135
Homogeneous products, 1.154–1.159, 20.59
Hospital industry
treatment of products, 10.9, 10.290–10.311
House building industry, 10.147–10.157
Household enterprises, 4.65–4.66
Households, 14.13–14.15(b)
HS. See Harmonized Commodity Description and
Coding System
Hybrid weights, 1.34
Hyperinflation
price collection issues, 6.25–6.27
ICPI. See Intermediate Consumption Price Indices
644
Ideal elementary indices, 20.7–20.14
Identification problem, 21.25
Identity test, 1.62, 9.25, 16.36, 16.101, 16.135, 20.32,
(g)
IDI. See Implicit deflator index
IMF Dissemination Standards Bulletin Board, 13.50
Implicit deflator index, 14.59
Implicit markets
hedonic prices and, 21.12–21.51
Implicit quality adjustment methods, 1.211, 1.217,
1.219–1.231, 7.80–7.109
Implicit Walsh index
final-demand commodities, 19.16(t)
Implicit weights, 1.305, 4.48–4.52
Import Price Index, 14.2, 14.53–14.54(t)
Import prices, 2.48, 3.10–3.11, 3.45–3.48
Imputation, 1.224, 1.228–1.230, 7.73
Imputation of unavailable prices, 9.48–9.63
seasonal products, 22.78–22.86(f)(t)
Imputed expenditures, 14.32–14.33
Imputed price, (g)
Index estimation strategy, 8.48–8.49
Index item, (g)
Index linking, 2.11. See also Linking
Index number formulas, (g appendix)
choice of, 1.125–1.132
index number theory, 1.18
superlative indices, 1.16–1.17
Index number problem, 15.1–15.3, 15.27, 16.12, (g)
Index number theory, 1.18, 15.34–15.98
annual base-year quantities, 15.34–15.49
annual weights, 15.34–15.65
chain index, 1.56–1.59
decomposition of value aggregates, 15.7–15.18
discrete approximations, 15.73–15.76
Divisia index, 1.60, 15.66–15.76
Fisher index, 15.19–15.24
fixed-base vs chain indices, 15.77–15.98
fixed basket index, 1.36–1.41, 1.55–1.59
geometric indices, 1.46–1.49
index number purpose, 1.19
Laspeyres index, 1.24–1.35, 15.12–15.18
Lowe index, 1.20–1.23, 15.34–15.54
midyear indices, 15.50–15.54
monthly price indices, 15.34–15.65
overview, 15.1–15.6
Paasche index, 1.24–1.33, 15.12–15.18
product test, 15.7–15.11
relationship between Lowe and Laspeyres indices,
15.102–15.104
relationship between Paasche and Laspeyres indices, 15.99–15.101
relationship between Young index and its time antithesis, 15.105–15.108
Index
seasonal products and, 22.6
symmetric averages of fixed-basket indices,
15.19–15.33
symmetric index, 1.50–1.54
theory of pure price index, 15.25–15.33
Walsh index, 15.25–15.32. See also Walsh price
index
Young index, 1.42–1.45, 15.55–15.65. See also
Young index
Index point effect, 9.138(t)
Index reference period, 9.83, (g)
Index terminology, (g appendix)
Indexation of contracts, 2.54–2.55, (g). See also Contract escalation
Individual consumption expenditures, 14.29
Industrial classifications, 1.185, 3.66–3.72
Industrial coverage, 1.176, 3.1–3.3
Industry, (g). See also specific industry
treatment of products, 10.1–10.10
Industry aggregation, 2.60, 4.5, 4.19–4.20, 13.37
Industry associations, 4.42
Industry-based stage-of-processing indices, 14.50. See
also Stage of processing
Industry labor productivity, 2.68
Industry specialists, 6.101
Industry surveys, 1.247–1.249, 4.35–4.36
Inflation
core inflation, 13.27–13.29
CPI vs PPI as measure of, 14.55–14.57
PPI as short-term indicator, 2.52
price collection issues, 6.25–6.27
sources of, 2.42–2.43
Information technology, 10.269
Input data
correcting, 9.174–9.178
missing price observations, 9.180–9.185
nonstatistical checking, 9.156–9.162
statistical checking, 9.163–9.170
treatment of outliers, 9.179
verifying, 9.174–9.178
Input editing, 1.335, (g). See also Data editing
Input PPI, 1.3, (g). See also Intermediate input price
index
Input price indices, 2.40
Institutional unit, 14.13–14.15(b), (g)
Insurance industry
treatment of products, 10.9, 10.239–10.263
Inter-Secretariat Working Group on Price Statistics,
2.26, 2.30, 2.32–2.33
Intermediate basket, (g)
Intermediate consumption, 7.68, 14.5, 14.48, 17.1, (g)
Intermediate Consumption Price Indices, 14.45
Intermediate demand, 3.6
Intermediate input price index, 1.117–1.118
aggregation, 18.39–18.45
economic approach, 17.61–17.76
Intermediate inputs, 2.40, (g)
International standard classification systems, 3.65–
3.79
International Standard Industrial Classification of All
Economic Activities, 1.185, 3.66–3.67(t),
10.2, (g)
International standards, 2.17–2.33
International transactions, 1.299
International Working Group on Price Indices, 2.21
Internet, 3.55
PPI dissemination, 13.65–13.68
price data collection, 6.56–6.57
Intersection universe, 8.4, 8.51, 21.2
Interviews, 6.52–6.55
Intracompany transfer price, 1.180, 3.34–3.37, (g). See
also Transfer price
Invariance tests, 16.45–16.49, 16.109–16.114
Invariance to changes in the units of measurement
test, 1.62, 16.46, 16.110, 16.135, (g)
Invariance to proportional change in current- or basequantities test, 1.78, 15.31, 16.43, 16.104, (g)
Inverse proportionality in base-year prices test, 16.42,
16.103, 20.32, (g)
Irrelevance of price change with tiny value weights,
16.120
ISIC. See International Standard Industrial Classification of All Economic Activities
ISO 9000, 12.85–12.88
IT. See Information technology
Item, (g)
Item replacement, 8.6–8.10
Item rotation, (g)
Item substitution, (g)
IWGPS. See Inter-Secretariat Working Group on Price
Statistics
Jevons price index, 9.70, (g)
axiomatic approach, 1.148–1.150
compilation of elementary price indices, 9.18–
9.38(t)
economic approach, 1.161, 1.164, 1.166
elementary index, 1.264, 20.18, 20.30, 20.41
final-demand commodities, 19.8–19.9(t)
in imputations, 7.91–7.92
Jevons formula, 9.18, 16.78, 20.83
relationships with other elementary indices, 1.143–
1.144, 20.24–20.30
treatment of missing prices, 9.52–9.54(t)
treatment of missing products, 9.55–9.63(t)
uses of, 1.83
Judgmental sampling, 1.317, 4.49
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Producer Price Index Manual
Konüs and Byushgens price index, 15.90, 15.92
Konüs-type hedonic output price index, 21.36
Lagged prices, 6.115
Laspeyres price index, (g and g appendix)
aggregation, 18.32–18.38
annual chain link index, 22.36–22.44(t)
chained, 1.58–1.59
chained rolling-year index, 22.47–22.54(f)(t)
decomposing current value changes, 1.29–1.30
for elementary aggregates, 9.65–9.66
elementary index, 20.56
equations, 15.12–15.18
final-demand commodities, 19.8(t)
formulas, 1.25, 1.66, 9.65, 15.42
geometric, 1.46–1.49, 9.33, 9.47, 9.65–9.66,
16.126, 19.12–19.14(t)
index of net output prices, 18.29
intermediate input price index, 1.117–1.119, 18.25
national Laspeyres output price index, 18.19
Paasche and Laspeyres bounding test, 1.62, 1.99,
16.52, 17.25(f), (g)
quantity index, 1.29, 15.16
quantity weights, 4.9
ratio of two Laspeyres indices, 1.33
relationship with Fisher index, 1.39
relationship with Lowe index, 1.39, 15.102–15.104
relationship with Paasche index, 1.36–1.39, 15.99–
15.101
special case of Lowe index, 1.24–1.28
test performance, 1.66, 1.76, 16.61
value-added deflators, 18.46–18.48
year-over-year index, 22.22–22.34(t)
Laspeyres-type hedonic output price index, 21.39
Legal services industry
model pricing, 10.289
standard specifications, 10.289
treatment of products, 10.9, 10.272–10.289
Levels approach to index number theory, 16.11–16.30
Linear functional form, 21.83
Linking
backward, 1.271, 9.118
forward, 1.271, 9.117
with overlapping prices, 9.60
quality adjustment, 1.219–1.220, 7.108
Linking coefficients
chaining indices, 9.117–9.118(t)
partial reweighting, 9.127
List price, 1.178, 6.21–6.24, (g)
LKAU. See Local kind of activity unit
Lloyd-Moulton price index, 1.116, 9.70, (g)
Local kind of activity unit, 14.14, (g)
Long-term links, 9.131–9.134
646
Lowe, Joseph, 2.4
Lowe price index, (g and g appendix)
with annual base-year quantities, 15.34–15.49
chained, 1.57–1.58
formula, 1.22, 15.15
interrelationships, 1.39–1.41
midyear indices, 15.50–15.54
with monthly price indices, 15.34–15.49
ratio of two Lowe indices, 1.31–1.32
relationship with Fisher index, 1.39–1.40
relationship with Laspeyres index, 1.39, 15.102–
15.104
relationship with Paasche index, 1.39, 15.49
relationship with Young index, 9.89–9.93
representativity bias, 1.110–1.112
seasonally adjusted, 22.91–22.97(f)(t)
test performance, 1.67–1.69
test properties, 16.133–16.137
time reversal test, 1.67–1.68
updated, 1.34–1.35
uses of, 1.20–1.23
Lower-level index, (g). See also Elementary aggregates
Lower-level substitution bias, 11.43–11.44
Macroeconomic aggregation, 2.61
Manufacturing sector
value-added deflators, 19.40–19.43(t)
Margin price, 10.170
Marginal unit revenue, 21.20
Market price, 1.328, 3.18, 6.88, (g). See also Transaction prices
Markups, 21.49–21.51
Marshall-Edgeworth price index, 1.127, 15.28, 15.31,
17.89, (g)
final-demand commodities, 19.16(t)
Matched-models method, 1.197, 7.12, 7.14–7.32, (g)
missing products, 7.15–7.22, 8.1
new products, 7.27–7.32, 8.1
sampling issues, 7.23–7.26, 8.1
Matched products method, (g)
Matched universe, 21.4, 21.6
Maximizing behavior, 1.94, 1.162–1.163, 17.21, 20.46
Mean value test, 16.135, 20.32
Mean value test for prices, 1.62, 16.50, 16.115, (g)
Mean value test for quantities, 16.51, (g)
Methodological statement, 13.47
Microeconomic approach, (g)
Midperiod price index, (g)
Midyear indices, 15.50–15.54, 17.88–17.99
artificial data set, 19.23–19.26(t)
Missing price observations, 1.263, 9.48–9.63
Missing products, 7.15–7.22
Index
Model pricing, 6.83, 10.122, 10.129
Modified Laspeyres price index, 7.82, (g), (g appendix)
Monetary expenditures, 14.32
Monotonicity in prices, 1.62, 16.53, 16.116, 20.32, (g)
Monotonicity in quantities, 16.53, (g)
Monotonicity tests, 16.53–16.55, 16.135
Month-to-month index, 9.19
seasonal products, 22.9–22.11, 22.63–22.77(t),
22.97
Monthly chained index, 9.19, 9.62
Monthly price indices, 15.34–15.65. See also Producer
price index, calculation of
Motor vehicles industry
treatment of products, 10.7, 10.100–10.116
Moving-year indices. See Rolling-year indices
MPI. See Import Price Index
Multifactor productivity, (g). See also Total factor
productivity
Multicollinearity, 21.91–21.92
Multiperiod identity test, 15.95
Multiplicative quality adjustment, 7.76(t)
Multitiered stratification, 5.34
Multitiered weighting system, 4.55
NACE. See General Industrial Classification of
Economic Activities within the European
Communities
NAICS. See North American Industrial Classification
System
Narrowly defined unit value, 20.10
National accounts, 1.250–1.251, 4.37–4.38. See also
System of National Accounts
National accounts deflator, 2.53
National intermediate input price index, 18.24–18.27
artificial data set, 19.52–19.55(t)
National output price index, 18.4–18.23
artificial data set, 19.48–19.51(t)
National revenue function, 18.5
National two-stage aggregation
artificial data set, 19.61–19.65(t)
National value-added deflator, 18.28–18.31
aggregation of establishment deflators, 18.57–
18.60
artificial data set, 19.56–19.60(t)
compared with final-demand deflator, 18.61–18.80
Net of intersectoral sales, 2.44–2.46
Net output index, 1.290
Net output PPIs, 14.46–14.48
Net output weights, 4.12–4.16
Net revenue function, 17.79
Net sector output, (g)
Net transaction prices, 3.17–3.18
Net value added, (g)
New establishment bias, 11.46–11.47
New-good problem, (g)
New goods, 1.242–1.243, (g)
defining, 8.17–8.21
identification and detection, 8.22–8.25
issues for inclusion of, 8.22–8.25
methods for introducing, 8.26–8.37(t), 8.38
partial reweighting, 9.124–9.130
quality change, 21.2–21.11
New goods and services, 1.242–1.243
hedonic indices, 21.72–21.76
New goods bias, 11.38
New product weights, 4.62–4.64
New products. See also New goods
matched-models method, 8.1
quality adjustment issues, 7.27–7.32, 7.70
Nominal prices, (g)
Nonprofit institutions serving households, 14.13–
14.15(b)
Nonbuilding construction, 10.158–10.166
Noncomparable replacement, 7.15, 7.138, 7.201–
7.202
Nonfinancial corporations, 14.13–14.15(b)
Nonmarket goods and services, 3.8–3.9
Nonmarket transactions, 1.295, (g)
Nonprobability sampling, 1.317, 5.16–5.29, (g)
Nonresidential building, 10.149–10.157
Nonresponse bias, 5.6, (g)
Normalized Rothwell index, 22.88–22.89(f)
North American Industrial Classification System,
1.185, 3.68–3.71
North American Product Class System, 3.78–3.79
NPISHs. See Nonprofit institutions serving households
Numerical data, 1.123–1.124. See also Artificial data
set
Observation, 6.18–6.24, (g)
Observation point, (g)
Offer function, 21.21
Office staff
quality checks by, 12.42–12.46
OLS. See Ordinary least squares regression
Omitted variable bias, 21.93
Optimizing behavior, 1.94, 17.15
Option cost adjustments, 7.118–7.125
Order price, 3.15–3.16, (g)
Ordinary least squares regression, 7.128
Other subsidies on production, (g)
Other taxes on production, (g)
Ottawa Group, 2.21, 2.33
Outliers, (g)
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Producer Price Index Manual
detection of, 9.148–9.49
identifying, 9.154–9.155, 9.160
treatment of, 9.179
Output, (g)
Output aggregator function, 17.101
Output editing, 1.337, 1.352, (g)
Output PPI, (g)
Output price index
aggregation, 18.39–18.45
theoretical, 1.94–1.103, 17.21–17.42, 21.45
Törnqvist price index as approximation to, 17.32–
17.37
Output prices, 2.38, 2.43
Output producer price index
uses of, 1.3
Output value aggregate, 14.27(b)
Outsourcing, 3.57
Overall mean imputation, 1.229–1.230, 7.90–7.104(t)
Overlap quality adjustment method, 7.80–7.89(t),
7.203–7.204
Overlapping quality adjustment, 1.219–1.223
Own share price weighting, 16.118
Paasche and Laspeyres bounding test, 1.62, 1.99,
16.52, 17.25(f), (g)
output price index, 17.25(f)
Paasche price index, (g)
aggregation, 18.32–18.38
annual chain link index, 22.36–22.44(t)
chained rolling-year index, 22.47–22.54(f)(t)
decomposing current value changes, 1.29–1.30
equations, 15.12–15.18
final-demand commodities, 19.8(t)
formula, 1.27, 15.47
geometric, 1.46–1.47, 16.126, 19.12 (t)
index of net output prices, 18.29
intermediate input price index, 1.117–1.119, 18.25
national Paasche output price index, 18.20
quantity index, 1.29, 15.16
relationship with Fisher index, 1.39
relationship with Laspeyres index, 1.36–1.39,
15.99–15.101
relationship with Lowe index, 1.39, 15.49
special case of Lowe index, 1.24–1.28
test performance, 1.66, 1.76, 16.61
value-added deflators, 18.46–18.48
year-over-year index, 22.22–22.34(t)
Paasche-type hedonic output price index, 21.41
Palgrave price index, 19.12–9.13(t), (g)
Partial reweighting, 9.124–9.130
PCE. See Personal consumption expenditures
Performance management, 12.65–12.74
648
Period-on-period hedonic indices, 7.173–7.178,
21.58–21.62
Period prices, 6.6–6.14
Personal consumption expenditures, 3.4. See also Individual consumption expenditures
Personal interviews, 6.52–6.54
Petroleum refining industry
treatment of products, 10.5, 10.59–10.70
PMCs. See Profit-maximizing centers
Point-in-time prices, 1.325, 6.4–6.5, 6.14, (g)
Population coverage, 1.175–1.177, 3.1–3.14
class of buyer coverage, 3.4–3.7
e-commerce, 3.12–3.14
economic activities, 3.1–3.3
export coverage, 3.10–3.11
globalization considerations, 3.12–3.14
import coverage, 3.10–3.11
nonmarket goods and services, 3.8–3.9
Positivity, 1.62, 16.35, 16.101, 16.135, (g)
Postal surveys, 6.43–6.49
PPI. See Producer price index
PPPs. see Purchasing power parities
PPS. See Probability proportional to size
Press releases, 13.41–13.47, 13.80(f*)
Price basis, 7.46–7.49, 7.72, 21.1, 21.3–21.4
Price bouncing, 1.261, 9.23, 9.69, 19.39
Price-bouncing test, 20.33
Price collection. See also Sampling
algorithms, 12.52–12.53
auditors, 12.27–12.41
automated telephone data submission, 6.50–6.51
backchecking, 12.33–12.38
confidentiality issues, 6.107
continuity, 1.202–1.205, 12.19–12.20
contracting out, 12.8
criteria that affect product's price, 6.32(t)
data entry queries, 12.21–12.25
dealing with refusals, 6.106–6.107
delinquency follow-up, 6.102–6.104
dispersion index report, 12.50
E-mail collection, 6.60
electronic data, 6.58–6.59
feedback, 12.26
field procedures, 6.66–6.104
forms, 6.116(f*)
frequency, 1.199, 1.325, 6.15–6.17
in-house, 12.6–12.10
industry specialists' role, 6.101
inflation issues, 6.25–6.27
Internet data provision, 6.56–6.57
lagged prices, 6.115
list prices, 6.21–6.24
medium, 6.42–6.65
methods, 1.201, 1.323–1.334, 6.42–6.65
Index
mode of, 12.6–12.10
monitoring data collection, 12.29–12.32
organization and management, 1.274–1.277, 12.1–
12.3
overview, 6.1
period prices, 6.6–6.14
personal interview method, 6.52–6.54
point-in-time prices, 6.4–6.5, 6.14
postal survey, 6.43–6.49
price discounts, 6.67–6.80
price discrimination, 6.92–6.98
price observation, 6.18–6.20
procedures, 6.35–6.104
process auditing, 12.33–12.38
process initiation, 12.4–12.10
product specification, 1.200, 6.28–6.34
published sources, 6.61–6.64
purposive sampling, 1.192–1.197
quality changes, 6.81–6.82
quality checks, 12.27–12.53
quality in field data collection, 12.11–12.26
questionnaire design, 6.36–6.41
quote report, 12.51
random sampling, 1.191–1.197
rebates, 6.69–6.80
reducing respondent workload, 6.108
regulatory data sources, 6.65
reports, 12.47–12.51
respondent relations, 6.105–6.108
sampling issues, 6.89–6.91
seasonal products, 6.116
self completion method, 6.43–6.49
specification changes, 6.81–6.82
telephone interview method, 6.55
timing of, 1.199, 6.2–6.30
training programs, 12.12–12.16
transaction descriptions, 12.17–12.18. See also
Product specification
transfer prices, 6.88
unique products, 6.83–6.86
unit values, 6.87
verification, 6.109–6.114
Price collectors, 1.275, 7.15, 8,16
Price coverage, 1.178–1.181
agricultural prices, 3.43
average prices, 3.25–3.29
contract prices, 3.19–3.21
discounts, 3.38–3.42
intracompany transfer prices, 3.34–3.37
net transaction prices, 3.17–3.18
order prices, 3.15–3.16
shipment prices, 3.15–3.16
spot market prices, 3.22–3.24
structured product descriptions, 3.44
subsidized prices, 3.30–3.33
surcharges, 3.38–3.42
Price discounts, 6.67–6.80
Price discrimination, 6.92–6.98
Price index, (g)
defined, 15.7
higher-level, 1.188, 1.267–1.268, 1.269–1.272.
9.46, 9.75–9.146
lower-level, 1.188–1.189, 9.46. See also Elementary aggregates
uses of, 1.1
Price level, 16.4
Price observation, 6.18–6.20
Price reference period, 1.21–1.22, 1.33–1.35, 9.83, (g)
Price relative, 1.26, 1.142–1.144, 5.95, 7.47, 9.18(t),
(g)
Price reversal test, 16.49, 16.59, 16.61–16.63, (g)
Price survey
objectives of, 5.7–5.13
sampling problems, 5.6
Price updated weights, 1.35, 9.94, 9,97, 9.101–
9.105(t)
Price updating, (g and g appendix)
Pricing point, (g)
Pricing to constant quality, 1.327, 1.340, 6.89, (g)
Probability proportional to quantities sold, 1.158
Probability proportional to revenue shares, 1.163
Probability proportional to size, 5.21, (g)
Probability sampling, 1.317, 4.57–4.58, 5.16–5.29,
5.74–5.79, (g)
Probability selection methods, 5.6
Process auditing, 12.33–12.38
PRODCOM. See Eurostat Classification of Products
by Activity
Producer price index, (g)
alternative indices, 13.30–13.34
analysis of contributions to change, 13.21–13.24
background, 2.34–2.41
for business services, 13.34
calculation of, 1.257–1.273, 1.351–1.357, 9.6–
9.146
classification structure, 1.300–1.302
combinations of, 2.59–2.68
concepts, 1.173–1.187, 11.18–11.20
coverage. See Price coverage
determining objectives, scope and conceptual basis
of, 1.286–1.293
development steps, 1.282–1.285
documentation, 12.72–12.73
economic commentary and interpretation, 13.25–
13.26
electronic data, 9.73–9.74
importance of quality management, 12.87–12.88
for industrial activities, 13.33
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Producer Price Index Manual
Producer price index (continued)
industrial coverage, 1.176, 3.1–3.3
input, 1.3
international standards, 2.17–2.33
introducing changes, 12.62
maintaining samples of businesses, 1.371–1.373
methodological statement, 13.47
monthly compilation, 12.56–12.58
monthly consultations, 12.61
net output PPIs, 13.31–13.32
official price indices, 2.10–2.16
organizational structure and responsibilities,
12.54–12.55
origins of, 1.13, 2.2–2.9
output, 1.3
population coverage, 1.175–1.177, 3.1–3.14
presentation of methodology, 13.71–13.74
price collection and editing, 1.323–1.339, 6.109–
6.114
price coverage, 1.178–1.181
product coverage, 1.176, 5.36, 14.47
product specifications, 1.367–1.370, 6.28–6.34
production and quality assurance, 12.54–12.64
purpose of, 1.174, 2.34–2.50
quality adjustment, 1.340–1.350, 7.71–7.160
quality issues, 13.78–13.80
reviews, 12.74
reweighting, 1.374–1.380. See also Weights,
updating
sample design, 1.315–1.322
seasonal adjustment and smoothing, 13.14–13.20
for services, 13.33
stage of processing, 13.30
statistical units, 1.182–1.183
subaggregate indices, 13.35–13.40
target indices, 9.75–9.77
time series types of presentation, 13.4–13.13
training requirements, 12.66–12.73
uses of, 1.9–1.15, 2.51–2.58, 11.21–11.26, 13.69–
13.70
valuation, 11.27
value-added, 1.3
weighting pattern, 1.303–1.314
Producer side
hedonic prices and, 21.18–21.21
Producer's index, (g)
Producer's price, 2.37, (g)
Product-based stage of processing indices, 14.49
Product classifications, 1.186–1.187, 3.73–3.79, 4.17–
4.20(t)
Product coverage, 1.176, 5.36, 14.47
Product detail in production account, 14.24(t)
Product line, (g)
Product line specification, (g)
650
Product rotation, (g)
Product specification, 6.28–6.34, (g)
aspects of, 6.32–6.33
price collection, 6.28–6.34
purpose of, 6.31
recording, 5.84
structural descriptions, 3.44
Product substitution, 1.239–1.241, 7.153, 10.86
Product test, 15.7–15.11, 16.32, 16.98, (g)
Product weights, 4.47–4.66
Production, 17.3, (g)
Production account, 14.16, 14.21–14.27(t)
Production cost adjustment, 7.118–7.125
Production function, 17.15–17.17, 19.16, 21.34
Production possibilities set, 17.15, 17.17, 17.24–
17.25, 17.27
Productivity analysis, 2.68
Products, (g)
Profit function, 17.77–17.81
Profit-maximizing centers, 3.36
Proportionality in current prices test, 1.62, 16.39,
16.102, 20.32, (g)
Proportionality test, 9.25, 16.41
Pseudo-superlative index, (g)
Publication. See Dissemination issues
Purchasers’ index, (g)
Purchasers’ price, 1.293, 14.19–14.20, (g)
Purchasing power parities, 14.66–14.68
Pure price change, 1.202, 1.340, (g)
Pure price index, 1.95, 1.109, 1.127, 15.25–15.32, (g)
Pure quantity index, 16.67
Purposive sampling, 1.192–1.197, 5.80–5.83
Quadratic mean of order r indices, 1.104, 17.43–17.54
Quality adjustment, (g). See also Quality change
additive vs multiplicative, 7.76(t)
base vs current period adjustment, 7.77
carryforward, 7.109
chaining, 7.192–7.198
choosing a method, 7.152–7.160(f)
class mean imputation, 7.105–7.106
comparable replacement, 7.107, 7.200
difference between hedonic and matched indices,
7.189–7.191
dummy variables on time, 7.170–7.172
expert judgment, 7.111–7.112
explicit methods, 7.110–7.151
hedonic approach, 7.126–7.151(f)(t). See also Hedonic method
hedonic price indices, 7.168–7.191. See also Hedonic index
high-technology sectors, 7.161–7.198
implicit methods, 7.80–7.109
Index
information requirements, 8.15–8.16
linked to show no price change, 7.108
long-run comparisons, 7.78, 7.199–7.213(t)
methods, 7.73–7.75
noncomparable replacement, 7.201–7.202
option cost adjustments, 7.118–7.125
overall mean imputation, 7.90–7.104(t)
overlap method, 7.80–7.89, 7.203–7.204
period-on-period indices, 7.173–7.178
petroleum refining industry, 10.67
producer price index, 1.340–1.350
product cost adjustment, 7.118–7.125
quantity adjustment, 7.113–7.117
rapid turnover of models, 7.161–7.198
short-run comparisons, 7.78, 7.199–7.213(t)
single-stage indices, 7.211–7.213
statistical metadata, 7.79, 8.16
superlative and exact hedonic indices, 7.179–
7.188, 21.63–21.69
targeted mean imputation, 7.90–7.104(t)
two-stage indices, 7.211–7.213
unavailable matched items, 7.71–7.79
Quality change. See also Quality adjustment
adjusting prices, 1.209–1.212
assessing product quality at supply, 7.66–7.69
conceptual issues, 7.43–7.70
cost differences, 1.233–1.234
evaluation of, 1.213–1.218
explicit adjustments, 1.232–1.237
fixed-input output price index, 7.44–7.51
fixed-output input price index, 7.52–7.54
hedonic approach, 1.235–1.237. See also Hedonic
method
implicit methods, 1.219–1.231
issues, 7.1–7.13
matched models method, 7.14–7.32
missing products, 7.15–7.22
nature of quality change, 7.37–7.42
new and disappearing items, 21.2–21.11
new products, 7.27–7.32
nonoverlapping qualities, 1.224–1.231
over-lapping qualities, 1.219–1.223
quantity adjustments, 1.232
sampling issues, 7.23–7.26
technology changes, 7.58–7.65
temporarily missing products, 7.33–7.34
Quality change bias, 11.34–11.37
Quality management, 12.75–12.78
Quality management models, 12.89–12.90
Quality management systems, 12.79–12.86
Quality of data collection
algorithms, 12.52–12.53
auditors, 12.27–12.28, 12.39–12.41
backchecking, 12.33–12.38
continuity, 12.19–12.20
data entry queries, 12.21–12.25
dispersion index report, 12.50
feedback, 12.26
importance of, 12.11
monitoring data collection, 12.29–12.32
process auditing, 12.33–12.38
quality checks, 12.27–12.53
quote report, 12.51
reports, 12.47–12.49
training programs, 12.12–12.16
transaction descriptions, 12.17–12.18
Quantity adjustment, 1.232, 7.113–7.117
Quantity index, 1.29, (g)
Quantity relative, (g)
Quantity reversal test, 1.62, 16.48, (g)
Quantity weights, 1.189, 4.9–4.11, (g)
Quantity weights symmetry test, 16.114
Questionnaire design, 6.36–6.41
Quote report, 12.51
Quoted prices, 10.122
Random sampling, 1.191–1.197, 5.4, 5.21, 5.64, 7.186
Ranking method, 5.75(t)
Ratio of average prices, 1.141, 1.144. See also Dutot
index
Ratio of harmonic means, (g)
Ratio of harmonic means price index, (g)
Rebased Young index, 15.61
Rebasing, (g). See also Reweighting
Rebates, 6.69–6.80, (g)
Record-keeping units, 1.182
Regional PPIs, 2.66–2.67
Registers, 1.252–1.253, 4.39–4.40, 4.56
Repeat recent real sale, 6.83
Replacement product, 1.214, 1.239–1.241, 8.43–8.45,
(g)
quality adjustment, 7.15
treatment of missing products, 9.55–9.63(t)
Replacement universe, 8.4, 8.53–8.54, 21.3, 21.6
Reports on the Observance of Standards and Codes
Data Module, 12.75
Representative item, (g)
Representative product basket, 15.12
Representative revenue shares, 15.55
Resampling, 1.206–1.208, 8.41–8.42. See also Sample
rotation
Residential building
construction industry, 10.147–10.157
Resource-cost quality adjustment, 7.43, 7.51, 7.54–
7.65, 7.70
Retail trade industry
treatment of products, 10.9, 10.167–10.181
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Producer Price Index Manual
Retail turnover, 1.255, 4.43, 4.45
Retrospective superlative index, 9.146
Revenue, (g)
Revenue function, 17.18, 18.5, 21.35
Revenue maximizers, 1.87–1.88, 1.96, 1.155, 17.101,
20.54
Revenue weights, 1.133–1.134, 1.244–1.256. See also
Value weights
administrative data, 1.254
business register, 1.252–1.253
censuses, 1.245–1.246
customs records, 1.256
national accounts, 1.250–1.251
surveys, 1.247–1.249
turnover, 1.255
uses of, 1.244
Revolutionary goods, 1.242–1.243, 4.62–4.64, 8.20,
8.34, (g)
Reweighting, 1.374–1.380, (g). See also Weights,
updating
frequency of, 9.110–9.113
Road construction industry, 10.158–10.160
Rolling-year indices, 1.171
seasonal products, 22.7–22.8, 22.46–22.54(f)(t),
22.55–22.63(f)(t), 22.91–22.98(t)
Root mean square error, 5.31, (g)
ROSC. See Reports on the Observance of Standards
and Codes Data Module
Rothwell formula, 10.18–10.21, 22.87
Rothwell index, 22.11, 22.87–22.89(f)
Sample allocation, 5.55–5.62
Sample augmentation, 8.31–8.37(t), (g)
Sample maintenance, 5.85–5.95
Sample rebasing, 8.27–8.30
Sample rotation, 1.241, 5.87–5.88, 8.11–8.14, 8.27–
8.30, 8.42, (g)
Sample selection, 1.315–1.322, 5.63–5.84
Sample space, 8.6–8.10, 8.38
Sample structure, 5.42–5.49
Sampled products, 1.136
Sampling
bias, 1.194–1.196, 11.11–11.15
clustering of price-forming units, 5.50
cut-off sampling, 5.30–5.33
error, 11.11–11.15. See also Sampling error
introducing a new sample of establishments, 5.89–
5.95
multitiered stratification, 5.34
objectives of price survey, 5.7–5.13
overview, 5.1–5.5
price collection issues, 6.89–6.91
price survey sampling problems, 5.6
652
prices, 1.188–1.190
probability vs nonprobability sampling, 5.16–5.29
product selection, 5.74–5.79(t)
purposive, 1.192–1.197, 5.80–5.83
quality adjustment issues, 7.23–7.26
random, 1.191–1.197, 5.4, 5.21, 5.64, 7.186
recording product specifications, 5.84
recruiting establishments, 5.73
resampling, 1.206–1.208, 8.41–8.42. See also
Sample rotation
sample allocation, 5.55–5.62
sample design, 5.14–5.62
sample maintenance, 5.85–5.95
sample rotation, 5.87–5.88
sample selection, 5.63–5.84
sample structure, 5.42–5.49
sampling frames, 1.193, 4.66, 5.1–5.3, 5.35–5.41
selection of establishments, 5.66–5.72(t)
strategies, 5.96–5.102
stratification, 5.51–5.54
techniques, 5.16–5.34
transaction selection, 5.74–5.79(t)
Sampling approach
elementary indices, 20.56–20.74
Sampling error, 5.10, 11.11–11.15, 11.28–11.32,
20.13, (g)
Sampling fractions, 4.36, 4.48, 4.57
Sampling frame, 1.193, 4.66, 5.1–5.3, 5.35–5.41, (g)
Sampling intervals, 4.57, 5.40, 5.67–5.69, 5.76
Sampling issues
matching and, 8.1, 8.3–8.15
Sauerbeck price index, (g)
Schultz midyear price index, 19.23–19.24(t)
Scientific sampling, 1.317. See also Probability
sampling
Scope, (g)
SDDS. See Special Data Dissemination Standard
Seasonal adjustment, 13.14–13.20, 22.12, 22.50,
22.61, 22.91–22.93
Seasonal baskets, 22.87
Seasonal products, 1.168–1.172, 22.1–22.4, (g)
adjustment factors, 22.57–22.59(f)
agricultural, 10.18–10.26
annual basket indices, 22.78–22.86(t), 22.97
annual price index, 10.27–10.28
Bean and Stine Type C index, 22.87–22.89
carryforward of unavailable prices, 22.78–
22.84(f)(t)
examples of, 22.3
forecasting rolling-year indices, 22.91–22.97(f)(t)
imputation of unavailable prices, 22.78–22.86(f)(t)
index number theory, 22.6
maximum overlap month-to-month price indices,
22.63–22.77(t)
Index
month-to-month index, 22.9–22.11, 22.98
predicting rolling-year index, 22.55–22.62(f)(t)
price collection, 6.116
product data set, 22.14–22.15(t)
rolling-year indices, 22.7–22.8, 22.12, 22.45–
22.54(f)(t), 22.98
Rothwell index, 22.11, 22.87–22.89(f), 22.94–
22.95
sources of fluctuations in prices and quantities,
22.2
strongly seasonal commodities, 22.1, 22.4, 22.9,
22.16
systematic biases, 22.4
Turvey's artificial set, 22.5(t), 22.14–22.15
weakly seasonal commodities, 22.1
year-over-year annual indices, 22.35–22.44(t)
year-over-year monthly indices, 22.6–22.9, 22.16–
22.34(t), 22.54, 22.56–22.57, 22.98
Seasonally adjusted approximate rolling-year index,
22.58–22.61(f)
Seasonally adjusted indices, 22.93–22.94(t)
Sector, (g)
SEHI. See Superlative and exact hedonic indices
Selection errors, 11.14
Semifinished products, 3.6, 10.71
Semilogarithmic functional form, 21.83
Services, (g)
Services sector, 3.3
value-added deflators, 19.44–19.47(t)
Shipbuilding industry
treatment of products, 10.6, 10.117–10.138
Shipment price, 3.15–3.16, (g)
Short-run comparisons, 7.78, 7.199–7.213(t)
Short-term change Laspeyres price index, (g)
Short-Term Indicators Regulation, 2.56
Short-term links, 9.131–9.134
Simple random sampling, 5.21
Single-stage indices, 7.211–7.213, 18.33
SNA. See System of National Accounts
Social transfers in kind, 14.29, 14.31
Software consultancy industry
treatment of products, 10.9, 10.264–10.271
Special Data Dissemination Standard, 13.50
Specification pricing, 1.327, 6.83, (g)
SPI. See Supply Price Index
Splicing, (g). See also Linking
Spot market price, 3.22–3.24, (g)
Spreadsheets, 12.59–12.60
Staff
quality checks by, 12.42–12.46
Stage of processing, 1.12, 2.63, 14.49–14.52, (g)
Stage of production, 1.12, 2.64, (g)
Standard deviation, 5.56, 9.164, 9.167
Standard errors, 7.134, 20.76, 21.92
Statistical metadata system, 8.16
Statistical Office of the European Communities, 6.16
Statistical offices, 4.45–4.46, 9.16–9.17, 12.11, 12.15,
12.54, 12.63, 12.75–12.76, 13.62
Statistical units, 1.182–1.183
characteristics of, 3.49–3.52
identifying sample units, 3.53–3.57
Steel mill industry
treatment of products, 10.5, 10.71–10.79
Stochastic approach, 16.77–16.96, (g)
early unweighted approach, 16.77–16.82
elementary indices, 20.75–20.82
overview, 16.6
unweighted, 1.82–1.83
uses of, 1.80–1.81
weighted, 1.84–1.86, 16.83–16.96
Stratification, 5.51–5.54
Stratification variables, 5.11
Structured product descriptions, 3.44
Subaggregate indices, 13.35–13.40
Subsidies on products, (g)
Subsidized prices, 1.180, 3.30–3.33, (g)
Substitution bias, 1.88, 1.116, 11.40–11.47, 17.24–
17.25, (g)
Substitution effect, 1.37, 1.39, 1.99, 17.28
Superlative and exact hedonic indices, 7.179–7.188,
21.63–21.69
Superlative index, (g)
aggregation, 18.32–18.38
approximation properties, 17.55–17.60
approximations to, 17.88–17.99
choice of, 1.107–1.109, 17.55–17.60
defined, 17.34
estimating theoretical output price indices, 1.99–
1.103
features of, 1.16
final-demand commodities, 19.16(t)
hedonic indices, 21.63–21.69
output price indices, 17.43–17.54
as symmetric indices, 1.104–1.106
Superlative output price indices, 17.43–17.60
Supply and Use Table, 14.8, 14.12, 14.43–14.45(t),
14.53
Supply Price Index, 14.45, 14.59
Supply side
hedonic prices and, 21.18–21.21
Surcharge, 3.38–3.42, (g)
Surveys, 1.247–1.249, 4.53–4.55
collection techniques, 6.35
postal surveys, 6.43–6.49
SUT. See Supply and Use Table
Symmetric index, (g)
averages of fixed-basket indices, 15.19–15.33
superlative indices, 1.104–1.106, 15.33
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Symmetric index (continued)
uses of, 1.50–1.54
Symmetry tests, 16.45–16.49, 16.109–16.114, 20.32
System of National Accounts, 14.7, 14.13–14.15,
14.21–14.42, (g)
System of price statistics
capital formation, 14.39–14.40(t)
constructing supply and use flows system from accounting data, 14.16–14.44
consumption, 14.28–14.38(t)(b)
CPI vs PPI as measure of inflation, 14.55–14.57
establishments, 14.14–14.15
external trade, 14.41–14.42(t)
framework for, 14.65(t)
GDP deflator, 14.62–14.63
institutional units, 14.13–14.15(b)
intermediate consumption price indices, 14.45(t)
international comparisons of goods and services
expenditure, 14.66–14.68(t)
labor services price indices, 14.64(t)
national accounts, 14.6–14.9
net output PPIs, 14.46–14.48
PPI variants, 14.45–14.52(t)
price indices, 14.2
price indices for final uses, 14.61
price indices for total supply, 14.58–14.60
production, 14.21–14.27(t)
recording transactions in goods and services,
14.17–14.20
relationship of PPI to other price indices, 14.53–
14.54(t)
stage of processing PPIs, 14.49–14.52
supply and use of goods and services, 14.10–14.12
timing of transactions, 14.18
valuation, 14.19–14.20
value-added deflators, 14.46–14.48
value aggregates, 14.1
Systematic sampling, 5.21
Target index, 9.75–9.77
Target seasonally adjusted annual index, 22.51
Targeted mean imputation, 1.229, 7.90–7.104(t)
Tax revenue sources, 4.61
Tax switching, 2.47
Taxes on products, 14.19, 14.23, (g)
Technology changes
quality adjustment issues, 7.58–7.65
Telecommunications industry
treatment of products, 10.9, 10.182–10.198 (Worksheet 10.1)
Telephone data surveys, 6.50–6.51
Telephone interviews, 6.55
Temporarily missing bias, 11.39
654
Temporarily missing products, 7.33
quality adjustment issues, 7.35–7.36
Test approach, 15.19, 16.1, (g)
Test of determinateness as to prices, 16.130
Theoretical characteristics price indices, 21.53–21.54
Theoretical output price index, 1.94–1.103, 17.12,
17.24–17.42, 21.45
estimating by superlative indices, 1.99–1.103,
17.55–17.60
maximizing behavior, 1.94
optimizing behavior, 1.94
pure price index, 1.95
upper and lower bounds, 1.96–1.98
Theoretical price index, 1.88, 1.91–1.92, 17.22
Theoretically ideal elementary index number formula,
20.11
Theory of consumer behavior, 1.37
Theory of the firm, 1.38
Time aggregation error, 20.13
Time aggregation problem, 20.10
Time reversal test, 1.62, 9.25, 15.20, 16.47, 16.112,
16.135, 20.35, (g)
uses of, 1.65–1.67
Törnqvist price index, (g). See also Törnqvist-Theil
price index
as approximation to economic output price index,
17.32–17.37
defined, 1.53
midyear price indices, 19.23–19.26(t)
national Törnqvist output price index, 18.23
superlative index, 1.100–1.101
test performance, 16.63
Törnqvist formula, 15.81, 20.49
Törnqvist-Theil price index
bilateral indices, 16.123–16.132
national Törnqvist intermediate input price index,
18.27
proof of optimality, 16.138–16.147
Total factor productivity, 2.68, (g)
Total output price index, 14.59
Total Quality Management, 12.80
Total supply price indices, 14.60
TQM. See Total Quality Management
Training programs
compilers and collectors, 12.68–12.71
requirements, 12.66–12.73
Transaction, (g)
Transaction price, 1.178, 2.39, 5.9, (g). See also Actual market transaction price
Transaction weights, 4.47–4.66
Transfer price, 6.88, 17.4, (g). See also Intra-company
transfer price
Transitivity, (g)
Transitivity in prices for fixed value weights, 16.113
Index
Transitivity test, 9.25, 16.135
“True” index, 1.161, (g)
Turnover, (g)
Turvey’s artificial set, 22.5, 22.14–22.15
Two-level aggregation system, 8.50
Two-stage aggregation, 18.32–18.38
Two-stage indices, 7.211–7.213, 19.16, (t)
Two-stage Laspeyres price index, 18.33, (g)
Two-stage sampling, 5.8, 5.49
Unequivocal price index, 15.25, (g)
Unequivocal quantity index, 16.67–16.68
Unilateral index number theory, 16.4
Unilateral price indices
axiomatic approach, 16.11–16.30
Unimportant industries and products, 4.21–4.22
Unique product, (g)
price collection, 6.83–6.86
Unit revenue function, 17.40
Unit value bias, 1.179, 11.45
Unit value index, 9.71–9.72, (g)
Unit value method, 10.192
Unit value “mix” problem, (g)
Unit value price, 6.8–6.9
Unit values, 1.154, 6.87, 20.10
United Nations
Fundamental Principles of Official Statistics, 13.3,
13.48–13.51
Statistical Commission, 2.17, 2.21
website, 13.3
Units of measurement test, 9.25, 16.110
Universe, (g)
Unweighted hedonic index, 21.70–21.71
Unweighted index number formula, 20.20, 21.70–
21.71
Unweighted stochastic approach, 16.77–16.82
Upper-level index, (g)
Upper-level substitution bias, 11.41–11.42
Use of income account, 14.16, 14.28(t), 14.37–
14.38(t)
User consultation, 13.69–13.80
advisory committee role, 13.75–13.77
explanation of PPI uses, 13.69–13.70
index quality issues, 13.78–13.80
presentation of methodology, 13.71–13.74
User cost price, 10.203
User-value quality adjustment, 7.43
Validation checks, 12.21
Valuation basis, 1.293
Valuation principles, 14.19–14.20
Value, (g)
Value added, (g)
aggregation, 1.121–1.122
defined, 17.1
GDP estimation, 1.93
Value-added deflator, 1.93, 1.117–1.119, 14.46–14.48
aggregation, 18.39–18.56
for the agriculture sector, 19.36–19.39(t)
double deflation method for constructing real value
added, 18.49–18.56
for and establishment, 17.77–17.87
for the manufacturing sector, 19.40–19.43(t)
for the services sector, 19.44–19.47(t)
Value-added PPI, (g)
uses of, 1.3
Value-added tax, (g)
Value aggregates, 14.1. See also Elementary aggregates
product test, 15.7–15.11
Value function, 21.16, 21.21
Value updating, (g)
Value weights, 1.189, 4.5–4.8, (g)
Van Ijzeren additive percentage change decomposition, 19.28–19.29(t)
Van Ijzeren decomposition factor, 19.28–19.29(t)
Variance, 5.6, 5.10, 5.56–5.61
VAT. See Value-added tax
Virtual corporation, 1.183, 3.13–3.14, 3.53–3.54, (g)
Volume index, (g)
Voorburg Group, 2.33
Wages
index linking, 2.11
Walsh price index, (g)
defined, 1.52
final-demand commodities, 19.16(t)
midyear price indices, 17.89, 19.23–19.25(t)
pure price index theory and, 15.25–15.32
representativity bias, 1.110–1.111
superlative index, 1.104–1.109, 17.48
test performance, 16.62
Walsh formula, 15.19
Weight property, 16.48
Weight reference period, 1.269, 4.23–4.27, 9.83, (g)
Weighted arithmetic-average price index, (g appendix)
Weighted stochastic approach, 16.83–16.96
Weighted least squares estimator, 7.172
Weighting
deriving pattern, 1.303–1.314
elementary aggregates, 1.139–1.140, 9.11–9.15
hedonic regressions, 21.86–21.90
Weighting tests, 16.117–16.122
Weights, (g)
classification system, 4.17–4.20
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Producer Price Index Manual
Weights (continued)
coverage of, 4.28–4.31
within elementary aggregates, 9.11–9.15
from establishments, 4.58–4.59
explicit weights, 4.48–4.52
frequency of reweighting, 9.110–9.113
household enterprises, 4.65–4.66
implicit weights, 4.48–4.52
introduction of new weights, 9.107–9.109
net output weights, 4.12–4.16
new products, 4.62–4.64
partial reweighting, 9.124–9.130
probability sampling, 4.57–4.58
product weights, 4.47–4.66
quantity weights, 4.9–4.11
role of, 4.2–4.4
selecting and determining, 4.67–4.76
sources of, 4.32–4.46, 4.53–4.66
transaction weights, 4.47–4.66
unimportant industries and products, 4.21–4.22
update, 1.57, 4.21, 5.86, 9.143. See also
Reweighting
value weights, 4.5–4.8
Wholesale price index, (g)
origins of, 1.13
uses of, 1.14, 2.49–2.50
Wholesale turnover, 1.255, 4.43, 4.45
656
Wireless telecommunications industry
treatment of products, 10.9, 10.182–10.198 (Worksheet 10.1)
WLS. See Weighted least squares estimator
WPI. See Wholesale price index
X-11 seasonal adjustment, 22.91, 22.93(f)
XPI. See Export Price Index
Year-over-year annual indices, 22.35–22.44(t)
Year-over-year monthly indices, 22.7–22.9, 22.16–
22.34(t), 22.98
Young index, 1.42–1.45, 15.55–15.65, (g and g
appendix)
factoring, 9.94–9.96
formula, 1.42, 15.55
geometric, 1.46–1.49
limitations, 15.63
rebased Young index, 15.61
relationship with its time antithesis, 15.105–15.108
relationship with Lowe index, 9.89–9.93, 15.55
seasonally adjusted, 22.91–22.97(f)(t)
test properties, 16.133–16.137
time antithesis of Young index, 15.64
YPI. See Total output price index