Estimating capital asset price indexes
Article Abstract:
An improved method for estimating capital asset price indexes involves the use of both conventional hedonic and repeat sales models. Maximum-likelihood procedures help take advantage of each model's specific features. In the new method, serial correlation in hedonic data is accounted for while depreciation in the repeat sales model is captured. Results of the joint model include narrower interval estimates and smaller standard errors for resulting price indexes. The joint estimation technique yields more accurate results than the GLS estimator or the individual models.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1997
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Comparing price levels across countries using minimum-spanning trees
Article Abstract:
A study showed how a comparison of price levels across a group of countries can be made by chaining bilateral price indexes across a spanning tree. It was argued that the minimum spanning tree should be used whose resulting multilateral price indexes are least sensitive to the choice of bilateral formula. Results obtained by chaining Fisher indexes across a minimum-spanning tree were compared with the Penn World Table.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1999
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Exact hedonic price indexes
Article Abstract:
Individual utility functions were established to determine the conditions which make hedonic price indexes exact measures of consumer welfare. The functions are aggregated to generate a social welfare function, which allows the quantification of quality changes as welfare effects. Companies optimize profit flow by selecting maximum price and product characteristic combinations.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1995
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