An introduction to the subject of index numbers for statisticians, economists and numerate members of the public. The ideal accompanying text for students taking the Royal Statistical Society s Ordinary and Higher examinations and for members of the Government Statistical Service. As well as covering the essential basics of the subject, it will describe important applications with a focus on the modern Consumer Prices Index (CPI) which is arguably the most important Official Statistic in the UK – the monthly release of the CPI, including UK inflation, is a high profile and widely discussed news item. Following the syllabus of the exams of the Royal Statistical Society, this is a well–tested, logical structure for an introduction to the subject. Concepts will be illustrated by exploring the construction and use of the widely used CPI. The book will mix theoretical aspects with practical techniques to give a balanced and accessible introduction to the subject, which will be applicable to activities carried out in both the public and private sector. INDICE: Chapter 1: Introduction 13 .1.1 What is an index number? 13 .1.2 Example the Consumer Prices Index 14 .1.3 Example FTSE 100 19 .1.4 Example Multidimensional Poverty Index 19 .1.5 Example Gender Inequality Index 21 .1.6 Representing the world with index numbers 22 .1.7 Chapter summary 23 .Chapter 2: Index Numbers and Change 24 .2.1 Calculating an index series from a data series 24 .2.2 Calculating percentage change 26 .2.3 Comparing data series with index numbers 29 .2.4 Converting from an index series to a data series 31 .2.5 Chapter summary 33 .Exercise A 34 .Chapter 3: Measuring Inflation 36 .3.1 What is inflation? 36 .3.2 What are inflation measures used for and why are they important? 38 .3.3 Chapter summary 42 .Exercise B 43 .Chapter 4: Introducing Price and Quantity 44 .4.1 Measuring price change 44 .4.2 Simple, un–weighted indices for price change 47 .4.3 Price, quantity and value 53 .4.4 Example Retail Sales Index 55 .4.5 Chapter summary 57 .Exercise C 58 .Chapter 5: Laspeyres and Paasche Indices 60 .5.1 The Laspeyres price index 61 .5.2 The Paasche price index 62 .5.3 Laspeyres and Paasche quantity indices 63 .5.4 Laspeyres and Paasche: mind your Ps and Qs 66 .5.5 Laspeyres, Paasche and the Index Number Problem 69 .5.6 Laspeyres or Paasche? 70 .5.7 A more practical alternative to a Laspeyres price index? 73 .5.8 Chapter Summary 74 .Exercise D 75 .Chapter 6: Domains and Aggregation 77 .6.1 Defining domains 77 .6.2 Indices for domains 79 .6.3 Aggregating domains 80 .6.4 More complex aggregation structures 83 .6.5 A note on aggregation structures in practice 83 .6.6 Non–consistency in aggregation 84 .6.7 Chapter summary 84 .Exercise E 85 .Chapter 7: Linking and Chain–linking 87 .7.1 Linking 88 .7.2 Rebasing 90 .7.3 Chain Linking 93 .7.4 Chapter summary 93 .Exercise F 94 .Chapter 8: Constructing the Consumer Prices Index 95 .8.1 Specifying the index 95 .8.2 The basket 96 .8.3 Locations and outlets 97 .8.4 Price collection 98 .8.5 Weighting 98 .8.6 Aggregation structure 99 .8.7 Elementary aggregates 100 .8.8 Linking 102 .8.9 Owner–occupier housing 103 .8.10 Publication 104 .8.11 Special procedures 104 .8.12 Chapter summary 104 .Exercise G 106 .Chapter 9: Re–Referencing a Series 107 .9.1 Effective comparisons with index numbers 107 .9.2 Changing the index reference period 108 .9.3 Why re–reference? 110 .9.4 Re–basing 111 .9.5 Chapter summary 112 .Exercise H 114 .Chapter 10: Deflation 115 .10.2 Value at constant price 118 .10.3 Volume measures in the National Accounts 119 .10.4 Chapter summary 120 .Exercise I 121 .Chapter 11: Price and Quantity Index Numbers in Practice 122 .11.1 A big picture view of price indices 122 .11.2 The Harmonised Index of Consumer Prices HICP 123 .11.3 UK measures of consumer price inflation 124 .11.4 PPI and SPPI 127 .11.5 PPPs and international comparison 127 .11.6 Quantity indices 128 .11.7 Gross Domestic Product 128 .11.8 Index of Production 130 .11.9 Index of Services 131 .11.10 Retail Sales Index 133 .11.11 Chapter summary 134 .11.12 Data links 134 .Chapter 12: Further Index Formulae 136 .12.1 Recap on price index formulae 136 .12.2 Classifying price and quantity index formulae 137 .12.3 Asymmetrically weighted price indices 137 .12.4 Symmetric weighted price indices 142 .12.5 Un–weighted price indices 144 .12.6 Different formulas, different index numbers 145 .12.7 Chapter summary 146 .Exercise J 148 .Chapter 13: The Choice of Index Formula 150 .13.1 The Index Number Problem 150 .13.2 The axiomatic approach 152 .13.3 The economic approach 153 .13.4 The sampling approach 155 .13.5 The stochastic approach to index numbers 156 .13.6 Which approach is used in practice? 158 .13.7 Chapter summary 160 .Exercise K 161 .Chapter 14: Issues in Index Numbers 162 .14.1 Cost–of–Living vs Cost–of–Goods 162 .14.2 Consumer behaviour and substitution 164 .14.3 New and disappearing goods 166 .14.4 Quality change 168 .14.5 Difficult to measure items 172 .14.6 Chapter summary 173 .Chapter 15: Research Topics in Index Numbers 174 .15.1 The uses of scanner data 174 .15.2 Variations on indices 178 .15.3 Difficult items 180 .15.4 Chaining 183 .15.5 Some research questions 183 .Appendix A. Mathematics for Index Numbers 185 .Appendix B. Choice of Index Formula 196 .Appendix C. Glossary of Terms and Formulas 219 .Appendix D. Solutions to Exercises 232 .Exercise A (Chapter 2) 232 .Exercise C (Chapter 4) 235 .Exercise D (Chapter 5) 239 .Exercise E (Chapter 6) 244 .Exercise F (Chapter 7) 247 .Exercise H (Chapter 9) 249 .Exercise I (Chapter 10) 251 .Exercise J (Chapter 12) 254 .Appendix E. Further Reading 257 .Appendix F. References and Notes 259
- ISBN: 978-1-118-97781-1
- Editorial: Wiley–Blackwell
- Encuadernacion: Rústica
- Páginas: 240
- Fecha Publicación: 21/08/2015
- Nº Volúmenes: 1
- Idioma: Inglés