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At What Price? Conceptualizing and Measuring Cost-of-Living and Price Indexes (2002) / Chapter Skim
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Glossary
Pages 307-314

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From page 307...
... Chained index A multiperiod index that links indexes for shorter periods that may have different item expenditure weights. Class-mean method One of the methods used during CPI item replacement.
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From page 308...
... in the comparison period and the reference period. CPI The Consumer Price Index, a modified Laspeyres index which tracks the price of 218 categories of goods across 87 primary sampling units in urban areas of the United States.
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From page 309...
... CPI-W A version of the CPI in which upper-level weights are based on a subset of the CEX sample that are wage earners. Deletion method One of the methods used in CPI item replacement when the replacement and replaced items are judged noncomparable and when neither overlapped prices nor producer cost information is available.
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From page 310...
... Indirect hedonic method In hedonic quality adjustment, a technique that involves adjusting, post hoc, the observed price difference between an outgoing item and a replacement item based on the portion of the price change attributable to a changed characteristic. The magnitude of the adjustment is determined by
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From page 311...
... Laspeyres index A price index measured as a weighted average of the ratios of individual prices in two periods. Item weights are fixed to reflect expenditure shares in the base period (which for a Laspeyres is the same as the reference period)
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From page 312...
... Paasche index A price index that weights expenditure shares by the comparison period (typically the most current) consumption patterns.
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From page 313...
... in the price ratio calculation. Tornqvist index A superlative index in which the rate of growth of individual prices is weighted by their share in the budget averaged over the base period and the current period.
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Key Terms

  • reference period
  • expenditure shares
  • comparison period
  • price change
  • hedonic method

  • laspeyres index
  • price quotes
  • observed price
  • base period
  • item replacement

  • primary sampling
  • item strata
  • individual prices
  • personal consumption
  • process whereby

  • item category
  • sampling units
  • hedonic quality
  • consumer price
  • expenditure weights

  • direct hedonic
  • indirect hedonic
  • cpi sample
  • track changes
  • expenditure ratio

  • replacement items
  • superlative index
  • cpi item
  • quality adjustment
  • changed item


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