Back Matter

Back Matter

Author(s):
International Monetary Fund
Published Date:
December 2009
    Share
    • ShareShare
    Show Summary Details

    Glossary of Terms

    Accrual accounting

    The recording of the value of a purchase or other transaction at the time the obligation to pay is incurred, as distinct from the time payment is made. For an XPI and an MPI, this means that the prices of goods are generally recorded at the time of shipment and the prices of services at the time of delivery.

    Additivity

    At current prices, the value of an aggregate is equal to the sum of its components. Additivity requires this identity to be preserved for the extrapolated values of the aggregate and its components when their current values in some period are extrapolated using a set of interrelated quantity indices; or, alternatively, when the current values of the aggregate and its components in some period are deflated using a set of interrelated price indices. See also “consistency in aggregation.”

    Aggregate

    A set of transactions relating to a specified flow of goods and services, such as the total exports produced by resident establishments in a given period or the total imports of intermediate inputs made by resident establishments in a given period. The term “aggregate” is also used to mean the value of the specified set of transactions.

    Aggregation

    The process of combining different sets of transactions to obtain a larger set of transactions. The larger set is described as having a higher level of aggregation than the sets of which it is composed. The term “aggregation” includes the process of adding the values of lower-level aggregates to obtain higher-level aggregates. In the case of price indices, it means the process by which price indices for lower-level aggregates are averaged, or otherwise combined, to obtain price indices for higher-level aggregates.

    ASYCUDA

    Automated System for Customs Data. A computer system designed by UNCTAD (United Nations Conference on Trade and Development) for the immediate verification of customs declarations. It ensures that declarations contain all information required, including quantity information, in order to receive customs clearance. The system also validates customs values by matching the unit values on the declarations against those for a predetermined list of commodity prices.

    Asymmetric index

    An index that does not treat the two periods being compared in a symmetric or balanced way by attaching equal importance to the price and value data in both periods. For example, the Laspeyres price index, the Paasche price index, and the Palgrave price index are asymmetrically weighted price indices: the Laspeyres because it uses the value shares of the base period, the Paasche and Palgrave because they use the value shares of the current period.

    Axiomatic approach

    The approach to index number theory that determines the choice of index number formula on the basis of its mathematical properties. A list of tests is drawn up, each test requiring an index to possess a certain property or satisfy a certain axiom. The choice of index is made on the basis of the number of tests satisfied. Not all tests may be considered equally important, and the failure to satisfy certain key tests may be considered sufficient grounds for rejecting an index. An important feature of the axiomatic approach is that prices and quantities are considered as separate variables and no account is taken of possible links between them. Also known as the “test approach.”

    Base period

    The base period is generally understood to be the period with which other periods are compared. However, the term is not a precise one and may be used to mean rather different things. Three types of base period may be distinguished:

    • The price reference period—the period that provides the prices to which the prices in other periods are compared. The prices of the price reference period appear in the denominators of the price relatives used to calculate the index.

    • The weight reference period—the period, usually one or more years, whose values serve as weights for the index. When the values are hybrid (that is, the quantities of one period are valued at the prices of some other period), the weight reference period is the period to which the quantities refer.

    • The index reference period—the period for which the index is set equal to 100.

    The three reference periods may coincide but frequently do not.

    Base-weighted index

    See “Laspeyres price index.”

    Basic price

    The amount received by the producer from the purchaser for a unit of good or service produced as output. It includes subsidies on products and other taxes on production. It excludes taxes on products, other subsidies on production, supplier’s retail and wholesale margins, and separately invoiced transport and insurance charges. Basic prices are the prices most relevant for decision making by suppliers.

    Basket

    A specified set of quantities of goods and services for which prices are collected for the purpose of compiling an index.

    Basket price index

    See “Lowe index” and equation (G.1) in the Appendix.

    BEC

    Classification by Broad Economic Categories. An internationally agreed classification that groups commodities according to their main end use: consumption goods, intermediate goods, capital goods, dual-purpose goods (motor spirit, passenger motor cars), and military and other goods not elsewhere classified. The categories and subcategories of the classification are defined in terms of SITC Rev.3 basic headings.

    Bias

    A systematic tendency of the calculated index to diverge from some ideal or preferred index. Bias can arise for a number of reasons, including the design of the sample selected, the price measurement procedures followed, the data processing methods used, and/or the index number formula employed.

    Bilateral price index

    The value ratio decomposition approach to index numbers involves breaking down the value ratio between two periods into two numbers: one representing the price change between the two periods and the other representing the quantity change between the two periods. The resulting price index is called a “bilateral price index.” “Bilateral” refers to the assumption that the price index depends only on price and quantity data pertaining to the two periods being compared.

    Book price

    See “list price.”

    Bouncing

    The fluctuation or oscillation of prices up and down in a persistent pattern.

    BPM6

    Balance of Payments and International Investment Position Manual, Sixth Edition. An internationally agreed set of accounts summarizing the economic relationships between residents of an economy and the rest of the world. The accounts provide an integrated framework for recording an economy’s international current, capital, and financial account transactions, and the financial assets and liabilities of its residents vis-à-vis nonresidents. See also “EBOPS.”

    Business register

    A register or list of enterprises or establishments involved in productive activities that is maintained by countries, often by their national statistical institutes, to provide the frame for carrying out their economic censuses and surveys. Such registers usually contain information on location, economic activity, size (employment, payroll, annual production, or turnover), contact persons, links with tax and other administrative registers, etc.

    Carli price index

    An elementary price index defined as the simple, or unweighted, arithmetic average of the current to base period price relatives.

    Carry forward

    The situation in which a missing price for a product in the current period is imputed as being equal to the last price observed for that product.

    Chain index

    An index number series for a long sequence of periods obtained by linking together index numbers spanning shorter sequences of periods, each with their own weights. The linking may be made as frequently as the weights change and the data permit, or at specified intervals, such as every five or ten periods. Each link in the chain consists of an index comparing each period with the previous period. See also equation (G.6) in the Appendix.

    Chain linking

    Splicing together two consecutive sequences of price indices that overlap in one or more periods. When the two sequences overlap by a single period, the usual procedure is simply to rescale one or another sequence so that the value in the overlap period is the same in both sequences and the spliced sequences form one continuous series. More complex methods may be used to link indices that overlap by more than one period. Also known as “chaining” or “linking.”

    Chain linking bias

    See “drift.”

    Characteristics

    The physical and economic attributes of a good or service that serve to identify it and enable it to be classified.

    C.i.f. price

    Cost, insurance, and freight price. The price of a good delivered at the customs frontier of the importing country or the price of a service delivered to a resident. It includes any insurance and freight charges incurred to that point. It excludes any import duties or other taxes on imports and trade and transport margins within the importing country.

    Circularity

    An index number property such that the algebraic product of the price index comparing period i with period j and the price index comparing period k with period j is equal to the price index that compares period k directly with period i. The property is also known as “transitivity.” When the axiomatic approach is used, a price index number may be required to satisfy the “circularity test.”

    COLI

    Cost of living index. An index that measures the change between two periods in the minimum expenditures that would be incurred by a utility-maximizing consumer, whose preferences or tastes remain unchanged, in order to maintaining a given level of utility (or standard of living or welfare). Because consumers may be expected to change the quantities they consume in response to changes in relative prices (the “substitution effect”), the COLI is not a fixed-basket index. COLIs cannot be directly calculated but may be approximated by superlative indices. A conditional cost of living index is one that assumes that all the factors that may influence the consumer’s utility or welfare other than prices (such as the physical environment) do not change.

    Commensurability test

    See “invariance to changes in the units of measurement test.”

    Commodity

    A generic term for a good or a service, interchangeable with the term “product.” Commodities or products are the result of production. They are exchanged and used for various purposes: as inputs in the production of other goods and services, as final consumption, or as investment. Individual sampled commodities or products are often described as “items.”

    Commodity reversal test

    A test under the axiomatic approach that requires that, for a given set of products, the price index should remain unchanged when the ordering of the products is changed.

    Comparison period

    See “current period.”

    Compensation of employees

    The total remuneration, in cash or kind, payable by enterprises, to employees in return for work done by the latter during the accounting period. Includes employers’ actual and imputed social contributions.

    Consistency in aggregation

    An index is said to be consistent in aggregation when the index for some aggregate has the same value whether it is calculated directly in a single operation, without distinguishing its components, or it is calculated in two or more steps by first calculating separate indices, or subindices, for its components, or subcomponents, and then aggregating them, the same formula being used at each step. See also “additivity.”

    Constant elasticity of substitution index

    A family of price indices that allows for substitution between products. The Lloyd-Moulton index is such an index.

    Constant prices test

    See “identity test.”

    Constant quantities test

    See “fixed-basket test.”

    Consumption of fixed capital

    The reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence, or normal accidental damage.

    Continuity

    The property whereby the price index is a continuous function of its price and quantity vectors.

    Contract escalation

    See “indexation of contracts.”

    Contract price

    A general term referring to a written sales instrument that specifies both the price and shipment terms. A contract may include arrangements for a single shipment or multiple shipments. Usually it covers a period of time in excess of one month. Contracts are often unique in that all the price-determining characteristics in one contract are not repeated exactly in any other contract.

    Coverage

    The set of goods and services whose prices are actually included in the index. For practical reasons, coverage may have to be less than the scope or domain of the index. In other words, the set of goods and services covered by the index may be narrower than the set of goods and services that the compliers of the index would prefer to include if it were feasible.

    CPA

    Statistical Classification of Products by Activity within the European Economic Community. The classification of goods and services by originating activity favored by the European Union. Originating activities are those defined by NACE.

    CPC

    Central Product Classification. An internationally agreed classification of goods and services based on the physical characteristics of goods or on the nature of the services rendered. Each type of good or service distinguished in the CPC is defined in such a way that it is normally produced by only one activity as defined in ISIC.

    CPI

    Consumer price index. A monthly or quarterly price index compiled and published by an official statistical agency that measures the changes in the prices of consumption goods and services acquired or used by households. Its exact definition may vary from country to country.

    CSWD index

    Carruthers, Sellwood, Ward, Dalén index. A geometric average of the Carli index and the harmonic mean of price relatives index.

    Current period

    In principle, the current period should refer to the most recent period for which an index has been computed or is being computed. However, the term is widely used to refer to any period that is compared with the base period or index reference period. It is also widely used simply to mean the latter of the two periods being compared. The exact meaning is usually clear in the context. Also referred to as the “comparison period.”

    Current-weighted index

    See “Paasche price index.”

    Cutoff sampling

    A sampling procedure in which a predetermined threshold is established with all units in the universe at or above the threshold being included in the sample and all units below the threshold being excluded. The threshold is usually specified in terms of the size of some known variable, the largest sampling units being included and the rest given a zero chance of inclusion. For XMPIs, size is usually defined in terms of export or import values or shares.

    Deflation

    The division of the current value of some aggregate by a price index—described as a “deflator”—in order to revalue its quantities at the prices of the price reference period or to revalue the aggregate at the general price level of the price reference period.

    Discount

    A deduction from the list or advertised price of a good or service that is available to specific customers under specific conditions. Examples include cash discounts, prompt payment discounts, volume discounts, trade discounts, and advertising discounts.

    Divisia approach

    A price or quantity index that treats both prices and quantities as continuous functions of time. By differentiation with respect to time, the rate of change in the value of the aggregate in question is partitioned into two components, one of which is the price index and the other the quantity index. In practice, the indices cannot be calculated directly, but it may be possible to approximate them by chain indices in which indices measuring changes between consecutive discrete periods are linked together.

    Domain

    An alternative term for the scope of an index. See “scope” and “coverage.”

    Drift

    A chain index is said to drift if it does not return to unity when prices in the current period return to their levels in the base period. Chain indices are liable to drift when prices fluctuate or “bounce” over the periods they cover. Also known as “chain linking bias.”

    Drobisch price index

    A price index defined as the arithmetic average of the Laspeyres price index and the Paasche price index. It is a symmetric index and a pseudo-superlative index.

    Dutot index

    An elementary price index defined as the ratio of the unweighted arithmetic average of the prices in the current period to the unweighted arithmetic average of the prices in the base period.

    EBOPS

    Extended Balance of Payments Services Classification. An extension to the BPM6 classification of international trade in services. It is primarily a product classification and as such is defined in terms of the CPC. However, in line with the BPM6, it includes some classes that are not compatible with the CPC or with other international product classifications such as the CPA. It also includes various supplementary items and alternative groupings that are intended to provide additional information on the transactions recorded in the system.

    Economic approach

    The approach to index number theory that assumes that the quantities are functions of the prices and not independent variables. The observed price and quantity data are assumed to be generated as solutions to various economic optimization problems. Also known as the “microeconomic approach.”

    Economic territory (of a country)

    The economic territory of a country consists of the geographical territory administered by a government within which persons, goods, and capital circulate freely. It includes (1) the air space, territorial waters, and continental shelf lying in international waters over which the country enjoys exclusive rights or over which it has, or claims to have, jurisdiction with respect to the right to fish or to exploit fuels or minerals below the sea bed; (2) territorial enclaves in the rest of the world (clearly demarcated areas of land that are located in other countries and that are used by the government for diplomatic, military, scientific, or other purposes with the formal political agreement of the government of the country in which they are physically located); and (3) any free zones, or bonded warehouses or factories operated by offshore enterprises under customs control (these form part of the economic territory of the country in which they are physically located).

    Economically significant prices

    Prices that have a significant influence on the amounts producers are willing to supply and on the amounts purchasers wish to buy.

    Editing

    The process of scrutinizing and checking the prices reported or collected for the price index. Checks may be carried out by computers using statistical programs written for the purpose. See “input editing” and “output editing.”

    Elementary aggregate

    The lowest level of aggregation for which value data are available and used in the calculation of the price index. The values of elementary aggregates are used to weight the elementary price indices associated with them to obtain indices for higher-level aggregates. Elementary aggregates usually cover a relatively narrow range of goods or services. They also serve as strata for the sample of products selected for pricing.

    Elementary item

    One of the individual goods or services that make up an elementary aggregate. An individual good or service selected for pricing from among the various goods or services comprising an elementary aggregate. Often referred to as an “item.”

    Elementary price index

    A price index for an elementary aggregate. Value weights cannot usually be assigned to the price relatives for sample products within an elementary aggregate, although other kinds of weighting may be explicitly or implicitly introduced into the calculation of elementary indices. Three examples of elementary index number formulas are the Carli, the Dutot, and the Jevons indices.

    Enterprise

    An institutional unit in its capacity as a producer of goods and services consisting of one or more establishments. An enterprise may be a corporation, a quasi-corporation, a nonprofit institution, or an unincorporated enterprise.

    Error

    The difference between the observed value of an index and its “true” value. Errors may be random or systematic. Random errors are generally referred to as “errors.” Systematic errors are called “biases.”

    Establishment

    An enterprise, or part of an enterprise, that is situated in a single location and in which a single nonancillary productive activity is carried out or in which the principal productive activity accounts for most of the value added. Also referred to as “LKAU” or “local kind of activity unit.” An establishment should be capable of providing basic accounting information on the prices and quantities it produces and the inputs it uses during an accounting period. This is often not the case in practice, particularly when an establishment is one of a number of production units belonging to an enterprise. In these circumstances, an establishment is defined either as the enterprise itself or in terms of the smallest subsets of production units for which the enterprise (or the subsets themselves) is able to supply accounting information on inputs and outputs for the time period under consideration.

    Evolutionary goods

    Goods that are similar to or extensions of existing goods. They are typically produced on the same production line using production inputs and processes that are largely the same as those used to produce existing goods. It is possible, at least in theory, to adjust for any quality differences between an evolutionary good and an existing good.

    Explicit quality adjustment

    A direct estimate of how much of the change in price of a product is attributable to changes in its physical or economic characteristics. It requires an evaluation of the contributions of the differences in particular characteristics to the differences in the observed prices of two products. It includes quality adjustments based on hedonic methods. See also “quality adjustment” and “implicit quality adjustment.”

    Factor reversal test

    Suppose the prices and quantities in a price index are interchanged to yield a quantity index of exactly the same functional form as the price index. Under the axiomatic approach, the factor reversal test requires that the product of this quantity index and the original price index should be identical with the proportionate change in the value of the aggregate in question. Also known as the “product test.”

    Factory gate price

    A basic price with the “factory gate” as the pricing point.

    FEPI

    Final expenditure price index. A measure of the changes in prices paid by consumers, businesses, and government for final purchases of goods and services. Intermediate purchases are excluded.

    FIOPI

    Fixed-input output (export) price index. The theoretical model for an XPI for resident producers based on the assumption of fixed technology and inputs. It requires the index to reflect changes in revenue resulting from the export of the same products—although not necessarily the same mix of products—produced under the same circumstances and sold under the same terms. In other words, changes in the index arise solely from changes in export prices and are not influenced by changes in inputs. Revenue maximizing behavior is assumed on the part of the exporting producer.

    Fisher price index

    A price index defined as the geometric average of the Laspeyres price index and the Paasche price index. It is a symmetric and superlative index.

    Fixed-basket price index

    The traditional conceptualization of a price index. The index measures the change in value of a fixed set of quantities—commonly described as a “fixed basket of good and services”—between two periods. Because the quantities or weights remain fixed, any change in the index is due to price changes only. In principle, there is no restriction on the quantities that make up the basket. They may be those of one of the two periods being compared, they may refer to the quantities in some third period, or they may constitute a hypothetical basket such as an average of the quantities in the two periods. Moreover, the quantities may refer to a much longer period of time than the periods of the index: for example, quantities exported or imported over a period of a year or more may be used for a monthly or quarterly XPI or MPI. A fixed-basket index is sometimes described as a “pure price index.” Also known as a “fixed-weight price index.”

    Fixed-basket test

    A test under the axiomatic approach that requires that if all the quantities remain unchanged (that is, the sets of quantities in both periods are identical), the price index should equal the proportionate change in the value of the aggregate. Also known as the “constant quantities test.”

    F.o.b. price

    Free on board price. The price of a good delivered at the customs frontier of the exporting country or the price of a service delivered to a nonresident. It includes the freight and insurance charges incurred to that point and any export duties or other taxes on exports levied by the exporting country.

    FOIPI

    Fixed-output input (import) price index. The theoretical model for an MPI for resident producers based on the assumption of fixed technology and outputs. It requires the index to reflect changes in costs resulting from the import of the same inputs—although not necessarily the same mix of inputs—purchased under the same terms in order to produce the same output with the same technology. In other words, changes in the index arise solely from changes in import prices of inputs and are not influenced by changes in outputs. Cost minimizing behavior is assumed on the part of the importing producer.

    Formula bias

    Bias arising from the index number formula used to calculate the index. See “bias” and “substitution bias.”

    GDDS

    General Data Dissemination System. A system designed by the IMF to promote the development and dissemination of comprehensive macroeconomic, financial, and socio-demographic data sets in line with international methodology and good practice. It enables official statistical agencies to identify and prioritize improvements to their statistics in a thorough and systematic way.

    Geometric Laspeyres price index

    A price index defined as the weighted geometric average of the current to base period price relatives using the value shares of the base period as weights. Also known as the “logarithmic Laspeyres price index.”

    Geometric Paasche price index

    A price index defined as the weighted geometric average of the current to base period price relatives using the value shares of the current period as weights. Also known as the “logarithmic Paasche price index.”

    Goods

    Physical objects for which a demand exists, over which ownership rights can be established, and whose ownership can be transferred from one institutional unit to another by engaging in transactions on the market. They are in demand because they may be used to satisfy the needs or wants of households or the community or used to produce other goods or services.

    Gross value added

    See “value added.”

    Harmonic mean of price relatives

    An elementary index that constitutes the harmonic average counterpart to the Carli index.

    Harmonic means price index

    See “ratio of harmonic means of prices.”

    Hedonic method

    A regression technique in which observed prices of different qualities or models of the same generic good or service are expressed as a function of the characteristics of the goods or services in question. It is based on the hypothesis that products can be treated as bundles of characteristics and that prices can be attached to the characteristics. The characteristics may be non-numerical attributes that are represented by dummy variables. The regression coefficients are treated as estimates of the contributions of the characteristics to the overall prices. The estimates may be used to predict the price of a new quality or model whose mix of characteristics is different from that of any product already on the market. The hedonic method can therefore be used to estimate the effects of quality changes on prices.

    Higher-level index

    A term used to describe an index for an aggregate at a higher level of aggregation than an elementary aggregate. An index constructed from elementary or lower-level indices. Weights are used to combine them. Also referred to as an “upper-level index.”

    Homogeneity tests

    Four tests under the axiomatic approach, namely: the proportionality in current prices test, the inverse proportionality in base prices test, the invariance to proportional changes in current quantities test, and the invariance to proportional changes in base quantities test.

    HS

    Harmonized Commodity Description and Coding System or Harmonized System. An internationally agreed commodity classification providing the basis for customs tariffs and for the compilation and dissemination of statistics on international merchandized trade. Goods are classified primarily according to the component material or the type of product, degree of processing, function, and economic activity. The HS was introduced in 1988 as a replacement for the SITC. It is updated every four to six years to take account of changing conditions of international trade. It was last revised in 2007 (HS07). There is full correspondence between the six-digit subheadings of HS07 and the five-digit basic headings of SITC Rev.4.

    Hybrid (export or import) index

    A price index that combines price indices for some of the elementary aggregates covered by the index with unit value indices for the other elementary aggregates covered by the index. Price indices are used for heterogeneous elementary aggregates with unacceptable levels of unit value bias. Unit value indices are used for homogeneous elementary aggregates with acceptable levels of unit value bias. See “price dispersion test” and “quantity proportionality test.”

    Hybrid values

    Hypothetical values in which quantities are valued at a different set of prices from those at which they were actually bought or sold. For example, when the quantities purchased in an earlier period are valued at prices prevailing in a later period.

    ICP

    International Comparison Programme. A worldwide statistical program that compares the price and volume levels of GDP and its component expenditures across participating countries. Comparisons are made every five or so years. Before such comparisons can be made, it is first necessary to express the GDPs of participating countries—which are in national currencies and valued at national price levels—in a common currency at a uniform price level. Purchasing power parities (PPPs) are used to do this. The PPPs are calculated with price and expenditure data collected from participating countries. The price and expenditure data collected cover the whole range of final goods and services included in GDP.

    Identity test

    A test under the axiomatic approach that requires that if the prices remain unchanged between the two periods (that is, the sets of prices are identical), the price index should equal unity. Also known as the “constant prices test.”

    Implicit quality adjustment

    Inferring indirectly the change in the quality of a product whose characteristics change over time by estimating, or assuming, the pure price change that has occurred. For example, if the pure price change is assumed to be equal to the average for some other group of products, the implied change in quality is equal to the actual observed price change divided by the assumed pure price change. If the whole of the observed price change is assumed to be pure price change, there is assumed to be no change in quality. See also “quality adjustment” and “explicit quality adjustment.”

    Imputed price

    The price assigned to a product for which the price is missing in a particular period. The term “imputed price” may also refer to the price assigned to a product that is not sold on the market, such as a good or service produced for own consumption, including housing services produced by owner-occupiers, or one received as payment in kind or as a free transfer from a government or nonprofit institution.

    Index number problem

    How to combine the relative changes in the prices and quantities of various products into (1) a single measure of the relative change of the overall price level and (2) a single measure of the relative change of the overall quantity level. Or, conversely, how a value ratio pertaining to two periods can be decomposed into a component that measures the overall change in prices between the two periods—that is, the price index—and a component that measures the overall change in quantities between the two periods—that is, the quantity index.

    Index reference period

    The period for which the value of the index is set at 100. See also “base period.”

    Indexation

    The periodic adjustment of the money values of some regular scheduled payments based on the movement of a nominated price index such as the CPI or another similar price index. The payments may be wages or salaries, social security or other pensions, other social security benefits, rents, interest payments, etc. The purpose of indexation is to protect the recipients of the payments against inflation. Also known as “index linking.”

    Indexation of contracts

    A procedure whereby a long-term contract for the provision of goods or services includes a periodic adjustment to the prices paid for the goods or services based on the increase or decrease in the level of a nominated price index, such as the PPI, the XPI, or the MPI. The purpose of the indexation is to take inflationary risk out of the contract. Also known as “contract escalation.”

    Industry

    A general term to describe a group of establishments engaged in the same, or similar, kinds of production activity. Also a specific term used to describe establishments engaged in mining and quarrying, manufacturing, electricity, gas, and water (Sections C, D, and E of ISIC, Rev. 3).

    Input editing

    The process of analyzing the prices reported by an individual respondent and querying price changes that are above a specified level or are inconsistent across product lines. An important objective of the process is to ensure that actual transaction prices are reported and to detect any changes in the specifications.

    Institutional unit

    A national accounts concept defined as an economic entity that is capable, in its own right, of owning assets, incurring liabilities, and engaging in economic activities and transactions with other entities. Enterprises are institutional units. Other kinds of units include households and governments.

    Intermediate basket

    A basket derived as the average of the baskets of two time periods, usually the base and current periods. The average can be arithmetic, as in the Marshall-Edgeworth price index, or geometric, as in the Walsh price index.

    Intermediate consumption

    The value of goods and services used or consumed as intermediate inputs by a process of production.

    Intermediate inputs

    Goods and services, other than primary inputs and fixed assets, used as inputs into the production process of an establishment, which are produced elsewhere in the economy or are imported. They may be either transformed or used up by the production process. Also called “intermediate products.”

    Intra-company transfer price

    The value assigned on a per unit or per shipment basis to goods transferred from one establishment of an enterprise to another. It may or may not be economically significant. However, it is not a market price because ownership of the good does not change hands. See “transfer price.”

    Invariance or symmetry tests

    Five tests under the axiomatic approach, namely: the commodity reversal test, the commensurability test, the time reversal test, the quantity reversal test, and the price reversal test.

    Invariance to changes in the units of measurement test

    A test under the axiomatic approach that requires that the price index does not change when the units of quantity to which the prices refer are changed: for example, when the price of some drink is quoted per liter rather than per pint. Also known as the “commensurability test.”

    Invariance to proportional change in current or base quantities test

    A test under the axiomatic approach that requires that the price index remains unchanged when all the base period quantities, or all the current period quantities, are multiplied by a positive scalar.

    Inverse proportionality in base prices test

    A test under the axiomatic approach that requires that if all base period prices are multiplied by the positive scalar λ, the new price index is 1/λ times the old price index.

    ISIC

    International Standard Industrial Classification of All Economic Activities. An internationally agreed classification that allows enterprises and establishments to be classified according to economic activity based on the class of goods produced or services rendered.

    Item

    An individual good or service in the sample of products selected for pricing. Also referred to as an “elementary item.”

    Item or product rotation

    The deliberate replacement of a sampled item, or product, for which prices are being collected, by another product before the replaced product has disappeared from the market or individual establishment. It is designed to keep the sample of products up to date and reduce the need for forced replacements caused by the disappearance of products. See “replacement product.”

    Item or product substitution

    The deliberate or forced replacement of a sampled item, or product, for which prices are being collected, by a new product because it is about to disappear or has disappeared from the market or specific establishment. See “replacement product.”

    ITRS

    International Transactions Reporting System. An ITRS measures individual balance of payments cash transactions passing through the domestic banks and foreign bank accounts of enterprises, noncash transactions, and stock positions. Statistics are compiled from forms submitted by domestic banks and from forms submitted by enterprisers to the compiler.

    Jevons price index

    An elementary price index defined as the unweighted geometric average of the current to base period price relatives also equal to the ratio of geometric means of the current to base period prices.

    Laspeyres price index

    A price index defined as a fixed-basket, or fixed-weight, index that uses the basket of goods and services of the base period. The base period serves as both the weight reference period and the price reference period. It is identical to a weighted arithmetic average of the current to base period price relatives using the value shares of the base period as weights. Also called a “base-weighted index.”

    List price

    The price of a product as quoted in the seller’s price list, catalogue, Internet site, etc. The gross price exclusive of all discounts, surcharges, rebates, and the like that apply to an actual transaction. Also known as the “book price.”

    LKAU

    Local kind of activity unit. See “establishment.”

    Lloyd-Moulton price index

    A particular case of a constant elasticity of substitution price index. In its unweighted form, the Lloyd-Moulton formula is

    In its weighted form, the Lloyd-Moulton formula is

    Lowe price index

    Although called a “Lowe price index” after the index number pioneer who first proposed this general type of index, it is not a single index but a family of basket price indices, each of which measures the proportionate change between periods 0 and t in the total value of a specified basket of goods and services.

    The family of Lowe indices includes the Laspeyres index, the Paasche index, the Marshall-Edgeworth index, and the Walsh index. See equation (G.1) in the Appendix.

    In practice, official statistical agencies frequently use a Lowe price index with a quantity basket of period b, where b denotes some period before 0, and hybrid value shares valued at prices in period 0, the price reference period. The share-weighted Lowe index is

    Lower-level index

    See “elementary price index.”

    Market price

    The amount of money a willing buyer pays to acquire a good or service from a willing seller. The actual price for a transaction agreed by the transactors. The net price inclusive of all discounts, surcharges, and rebates applied to the transaction. From the seller’s point of view, the market price is the basic price; from the buyer’s point of view, the market price is the purchaser’s price. Also referred to as “transaction price.”

    Marshall-Edgeworth price index

    A price index defined as the weighted arithmetic average of the current to base period price relatives that uses the quantities of an intermediate basket as weights. The quantities of the intermediate basket are arithmetic averages of the quantities of the base and current periods. It is a symmetric index and a pseudo-superlative index.

    Matched models or products method

    The practice of pricing exactly the same model or product in two or more consecutive periods. It is designed to ensure that the observed price changes are not affected by quality change. The change in price between two perfectly matched models or products is described as a “pure” price change.

    Mean value tests

    Three tests under the axiomatic approach, namely: the mean value test for prices, the mean value test for quantities, and the Paasche and Laspeyres bounding test.

    Mean value test for prices

    A test under the axiomatic approach that requires that the price index lies between the smallest price relative and the largest price relative.

    Mean value test for quantities

    A test under the axiomatic approach that requires that the implicit quantity index lies between the minimum and maximum rates of growth of the individual quantities.

    Merchanting

    The purchase of goods by a resident from a nonresident combined with the subsequent resale of the goods to another nonresident without the resident taking physical possession of the goods. In other words, the goods do not pass through the economic territory in which the resident resides.

    Microeconomic approach

    See “economic approach.”

    Mid-period or midyear price index

    A price index that utilizes either the quantity or value weights from an intermediate period that lies between the base period and the current period when the number of periods between them is odd, or the average of the quantity or value weights for two consecutive intermediate periods that lie between the base period and the current period when the number of periods between them is even.

    Mirror price index

    An XPI for a country constructed as the weighted average of the corresponding MPIs of the countries to which it exports. An MPI for a country constructed as the weighted average of the corresponding XPIs of the countries from which it imports.

    “Modified,” “short-term change,” or “two-stage” Laspeyres price index

    These often-used descriptions of the Laspeyres index have at least three meanings:

    As a short-run modified Laspeyres index. This is an index with weight reference period b and price changes between periods 0 and t where the latter are decomposed into price changes between period 0 and t ̶ 1 and period t ̶ 1 and t.

    The decomposition helps deal with changes in the sampled products. In the absence of changes in the sample, PMLAS reduces to a Young index between t and 0 with weight reference period b.

    As a price-updated version of a Young index. This is a fixed-weight index in which the quantities are those of the weight reference period b, but the price reference period is a later period 0 preceding the current period t. The implicit expenditure weights are obtained by revaluing the quantities of the weight reference period b at the prices of the price reference period 0, a procedure described as “price updating.” This modified Laspeyres index between periods 0 and t can be interpreted as a weighted average of the price relatives between 0 and t, using the price-updated expenditure weights. Its definition is

    and corresponds to a Lowe price index between periods 0 and t with weight reference period b. See also “price updating” and “Lowe price index.”

    As a two-stage Laspeyres index. The two-stage procedure decomposes a Laspeyres price index between b and t into a Laspeyres price index between b and 0 and a Lowe price index between 0 and t.

    See also equation (G.3) in the Appendix.

    Monotonicity in prices

    The property whereby if any current period price increases or any base period price decreases, the price index increases.

    Monotonicity in quantities

    The property whereby if any current period quantity increases or any base period quantity decreases, the implicit quantity index that corresponds to the price index increases.

    Monotonicity tests

    Four tests under the axiomatic approach that test for monotonicity in current prices, in base prices, in current quantities, and in base quantities.

    MPI

    Import price index. See “XMPIs.”

    Multi-factor productivity

    See “total factor productivity.”

    NACE

    The acronym from the French for General Industrial Classification of Economic Activities within the European Communities. The classification is basically a more detailed version of ISIC appropriate to European circumstances.

    Net exports

    The value of exports of goods and services less the value of imports of goods and services. Also known as the “balance of exports and imports.”

    Net value added

    See “value added.”

    New good problem

    Difficulty in comparing prices between two periods when a product enters the basket only in period 2, so that a price for the product does not exist in period 1.

    New goods

    See “evolutionary goods” and “revolutionary goods.”

    Non-probability sampling

    Selection in which establishments or products do not have a known non-zero probability of selection. Also known as “non-random sampling.” It includes the deliberate selection of a sample of establishments and products on the basis of the knowledge or judgment of the person responsible. Also known as “purposive sampling” and “judgmental sampling.”

    Nonresident

    An institutional unit whose center of economic interest is not in the economic territory of the country.

    Non-response bias

    The bias that arises when those who do not respond have different price experiences than those who do respond.

    Non-sampling error

    An error in sample estimates that cannot be attributed to sample variation. It can arise from any number of different sources, including defects in the sampling frame and/or in the selection of sample units, faulty demarcation of sample units, mistakes in the collection of data owing to misunderstandings or dishonesty on the part of the enumerator and/or the respondent, and mistakes during the processing of data.

    Observation

    The price collected or reported for a sampled product or item.

    Order price

    The price quoted at the time the order is placed by the purchaser.

    Other subsidies on production

    The subsidies that resident enterprises may receive as a consequence of engaging in production; for example, subsidies on payroll or workforce, or subsidies to reduce pollution. They do not include subsidies on products.

    Other taxes on production

    The taxes that resident enterprises may pay as a consequence of engaging in production. They mainly consist of current taxes on the labor or capital employed in the enterprise, such as payroll taxes or current taxes on vehicles or buildings. They do not include taxes on products.

    Outlier

    A term that is generally used to describe any extreme value in a set of survey data. In an XMPI context, it is used for an extreme value of price or price relative that requires further investigation or that has been verified as being correct.

    Output

    The goods or services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.

    Output editing

    The process of comparing the price levels and price movements of similar products between different respondents and querying any outliers.

    Paasche and Laspeyres bounding test

    A test under the axiomatic approach that requires that the price index lies between the Laspeyres price index and the Paasche price index.

    Paasche price index

    A price index defined as a fixed-basket, or fixed-weight, index that uses the basket of goods and services of the current period. The current period serves as the weight reference period and the base period as the price reference period. It is identical to a weighted harmonic average of the current to base period price relatives using the value shares of the current period as weights. Also called a “current weighted index.”

    Palgrave price index

    A price index defined as the weighted arithmetic average of the current to base period price relatives using the current period value shares as weights.

    Point-in-time prices

    Transaction prices prevailing on a particular day of the month.

    Positivity

    The property whereby the price index and its constituent vectors of prices and quantities are positive—that is, greater than zero.

    PPI

    Producer price index. A measure of the change in the prices of goods and services either as they leave their place of production or as they enter the production process. A measure of the change in the prices received by domestic producers for their outputs or of the change in the prices paid by domestic producers for their intermediate inputs.

    PPPs

    Purchasing power parities. Spatial deflators and currency converters that eliminate the effects of the differences in price levels between countries, thus allowing volume-level comparisons and price-level comparisons of GDP and its components.

    PPS

    Probability proportional to size. A sampling procedure whereby each unit in the universe has a probability of selection proportional to the size of some known variable. In the case of XMPIs, size is usually defined in terms of export or import values or shares.

    Price adjustment escalator

    The price index nominated to determine the periodic adjustments to regular scheduled payments or to prices of long-term contracts required under indexation. See “indexation” and “indexation of contracts.”

    Price dispersion test

    A test to determine whether the individual unit values for an elementary aggregate (defined as the lowest level of the customs commodity classification by destination or source country) are sufficiently uniform for the overall unit value to be used as a surrogate price in a hybrid XPI or MPI. The test involves computing unit values for every transaction covered by the elementary aggregate for a given month or quarter (depending on the frequency of the index) and measuring their statistical variance. A low variance measurement indicates that the overall unit value for the elementary aggregate could be included in the index. Before doing so, the test is repeated for a number of months or quarters to verify that the low variance measurement persists over time. See also “quantity proportionality test.”

    Price index

    A measure reflecting the average of the proportionate changes in the prices of the specified set of goods and services between two periods of time. Usually a price index is assigned a value of 100 in some selected base period, and the values of the index for other periods are intended to indicate the average percentage change in prices compared with the base period.

    Price reference period

    The period with whose prices the prices in the current period are compared. The period whose prices appear in the denominators of the price relatives. See also “base period.”

    Price relative

    The ratio of the price of an individual good or service in one period to the price of that same good or service in some other period. Also referred to as a “price ratio.”

    Price reversal test

    A test under the axiomatic approach that requires that the quantity index remains unchanged after the price vectors for the two periods being compared are interchanged.

    Price updating

    A procedure whereby the quantities of an earlier period are revalued at the prices of a later period. The resulting values are hybrid. In practice, the price-updated values may be obtained by multiplying the original values by price relatives or price indices. Also known as “value updating.”

    Pricing point

    The point in the production or distribution process to which the price refers. For an exported good, it is the customs frontier of the exporting country; for an imported good, it is the customs frontier of the importing country. For an exported service, it is the place of delivery to a nonresident; for an imported service, it is the place of delivery to a resident.

    Pricing to constant quality

    See “specification pricing.”

    Primary inputs

    Land, labor, and capital.

    Probability sampling

    The random selection of a sample of units, such as establishments or commodities, in such a way that each unit has a known non-zero probability of selection. It ensures that the units are selected in an impartial and objective fashion and permits the measurement of the quality of survey results through estimates of the variance or sampling error. Also known as “random sampling” or “scientific sampling.”

    PRODCOM

    The acronym from Production Communautaire, the name in French for the European Union’s system for the collection and dissemination of statistics on the production of manufactured goods. Manufactured goods are those produced by the mining, quarrying, and manufacturing industries. The system is based on a product classification—the Prodcom List—with about 4,500 headings relating to manufactured products.

    Producer’s index

    An index constructed from price data supplied by producers—that is, by exporters in the case of XMPIs.

    Producer’s price

    The amount received by the producer from the purchaser for a unit of good or service produced as output. It excludes any VAT (or similar deductible tax on products) invoiced to the purchaser. It also excludes supplier’s retail and wholesale margins and separately invoiced transport and insurance charges. (A producer’s price for a product is the basic price plus any nondeductible tax on products paid by the producer less any subsidies on products received by the producer.)

    Product

    See “commodity.”

    Product line

    A group, class, or category of products that is relatively homogeneous in use and price behavior.

    Product line specification

    A statement of the characteristics of the range of products included in a product line. Its purpose is to provide the frame within which individual products may be selected as part of the sample for pricing. It may also describe the products included in a subindex. See “SPD.”

    Product specification

    A detailed list of the characteristics that identify an individual sampled product. Its purpose is to ensure that a consistent price is collected from period to period relating to a consistent product with the same terms of sale in each period. Hence, the characteristics listed cover both the product (name, serial number, description, etc.) and the transaction (class of customer, size of shipment, discounts, payment terms, delivery details, etc.).

    Product test

    See “factor reversal test.”

    Production

    An activity that transforms or combines material inputs into other material outputs—as in agricultural, mining, manufacturing, or construction activities—or transports materials from one location to another. Production also includes storage activities—which in effect transport materials in the same location from one time period to another—and the creation of services of all types.

    Proportionality in current prices test

    A test under the axiomatic approach that requires that if all current period prices are multiplied by the positive scalar λ, the new price index is λ times the old price index.

    Pseudo-superlative index

    An index that approximates any superlative index to the second order around an equal price and quantity point.

    Purchaser’s index

    An index constructed from price data supplied by purchasers—that is, by importers in the case of XMPIs.

    Purchaser’s price

    The amount paid by the purchaser in order to take delivery of a unit of a good or service at the time and place required by the purchaser. It excludes any VAT (or similar deductible tax on products) that the purchaser can deduct from his own VAT liability with respect to VAT invoiced to his customers. It includes supplier’s retail and wholesale margins, separately invoiced transport and insurance charges, and any VAT (or similar deductible tax on products) that the purchaser cannot deduct from his own VAT liability. (A purchaser’s price for a product is the producer’s price plus supplier’s retail and wholesale margins, separately invoiced transport and insurance charges, and nondeductible taxes on products payable by the purchaser.) Purchasers’ prices are the prices most relevant for decision making by buyers.

    “Pure” price change

    The change in the price of a good or service whose characteristics are unchanged; or the change in the price after adjusting for any change in quality.

    “Pure” price index

    A price index that measures “pure” price change. A price index that is based on pricing a fixed basket of products and product quantities at the prices of the base period and at the prices of the current period. Because the products and their quantities remain constant, any change in the index is due to price changes only. Also called an “unequivocal price index.”

    “Pure” quantity change

    The change in the quantity of a good or service whose characteristics are unchanged.

    “Pure” quantity index

    A quantity index that measures “pure” quantity change. A quantity index that is based on a fixed basket of products where the quantities of the base period and the quantities of the current period are both valued with the same set of prices. Because the products and their prices remain constant, any change in the index is due to changes in quantities only. Also called an “unequivocal quantity index.”

    Purposive sampling

    See “non-probability sampling.”

    Quality adjustment

    An adjustment to the change in the price of a product whose characteristics change over time that is designed to remove the contribution of the change in the characteristics to the observed price. In a price index context, an adjustment is needed when the price of a replacement product has to be compared with the price of the product it replaces. In practice, the required adjustment can only be estimated. Different methods of estimation, including hedonic methods, may be used in different circumstances. See “explicit quality adjustment” and “implicit quality adjustment.”

    Quality change bias

    Systematic error arising from the application of inappropriate or no quality adjustments.

    Quantity index

    A measure reflecting the average of the proportionate changes in the quantities of a specified set of goods and services between two periods of time. Usually a quantity index is assigned a value of 100 in some selected base period, and the values of the index for other periods are intended to indicate the average percentage change in quantities compared with the base period. See “volume index.”

    Quantity proportionality test

    An elementary aggregate (defined as the lowest level of the customs commodity classification by destination or source country) may fail the price dispersion test, yet its overall unit value may still be suitable for inclusion as a surrogate price in a hybrid XPI or MPI if the quantities of the various transactions covered by the elementary aggregate remain in fixed proportions over time. The quantity proportionality test is used to verify whether or not this is the case. It involves computing the average quantities transacted across quantiles of the transaction values for a number of months or quarters (depending on the frequency of the index) and comparing the relatives of the average quantity transacted between months or quarters for each quantile. If the quantity relatives are roughly the same across quantiles, this adds support to the proposition that quantity proportions have not changed over time. See also “price dispersion test.”

    Quantity relative

    The ratio of the quantity of a specific good or service in one period to the quantity of the same good or service in some other period.

    Quantity reversal test

    A test under the axiomatic approach that requires that the price index remains unchanged after the quantity vectors for the two periods being compared are interchanged.

    Quantity weights

    Weights defined in terms of physical quantities, such as the number or total weight of goods or the number of services. Quantity weights are feasible only at the detailed product level because meaningful aggregation of product weights requires them to be commensurate. Values rather than quantities act as weights for price relatives. See “value weights.”

    Random sampling

    See “probability sampling.”

    Ratio of harmonic means of prices

    An elementary index that constitutes the harmonic average counterpart to the Dutot index. Also known as the “harmonic means price index.”

    Real GDI

    Real gross domestic income. A real income measure defined as the volume of GDP plus the trading gain or loss resulting from changes in the terms of trade.

    Rebasing

    Rebasing may have different meanings in different contexts. It may mean

    • changing the weights used for a series of indices,

    • changing the price reference period used for a series of indices, or

    • changing the index reference period for a series of indices.

    The weights, the price reference period, and the index reference period may be changed separately or at the same time.

    Rebate

    A discount paid to the customer after the transaction has occurred.

    Replacement product

    The product chosen to replace a product previously sampled, either because it has disappeared completely from the market or because its market share has fallen either in a specific establishment or in the market as a whole.

    Representative product

    A product, or product line, that accounts for a significant proportion of the total trade within an elementary aggregate, and/or for which the average price change is expected to be close to the average for all products within the aggregate.

    Representativity bias

    Bias in a basket index that results from the use of products that are not representative of those in the two periods being compared; that is, the bias that arises from the use of products whose aggregate price change systematically diverges from the average price change in the two periods.

    Resident

    An institutional unit whose center of economic interest is in the economic territory of the country.

    Rest of the world

    All nonresident institutional units that enter into transactions with resident units or have economic links with resident units.

    Revenue

    The value of output sold. The value of invoiced sales of goods or services supplied to third parties during the reference period.

    Revenue weights

    Weights or shares based on the value of output sold in the weight reference period. See “value weights.”

    Revolutionary goods

    Goods that are significantly different from existing goods. They are generally produced on entirely new production lines using production inputs and processes that are considerably newer than those used to produce existing goods. It is virtually impossible, both in theory and in practice, to adjust for any quality differences between a revolutionary good and any existing good.

    Reweighting

    Replacing the weights used in an index with a new set of weights.

    Rolling year indices

    A monthly series of indices that compares successive non-calendar years, each of 12 consecutive months, with a base calendar year. The monthly indices are constructed by comparing each month in the non-calendar year with the corresponding month in the base calendar year. The resulting indices can be regarded as seasonally adjusted price indices. For example, if the base calendar year is 2000, the index for January 2001 will refer to the non-calendar year February 2000 to January 2001: February 2000 will be compared with February 2000, March 2000 with March 2000, . . . . . . . . . ., December 2000 with December 2000, and January 2001 with January 2000. The index for February 2001 will refer to the non-calendar year March 2000 to February 2001: March 2000 will be compared with March 2000, April 2000 with April 2000, . . . . . . . . . ., January 2001 with January 2000, and February 2001 with February 2000, and so on for each month in the series.

    Sample augmentation

    Maintaining and adding to the sample of establishments in the survey panel to ensure that it continues to be representative of the population of establishments. A fixed sample of establishments tends to become depleted as establishments cease producing or stop responding. Recruiting new establishments also facilitates the inclusion of new commodities in an XPI or an MPI.

    Sample rotation

    Limiting the length of time that establishments and/or commodities are included in price surveys by dropping a proportion of them, or possibly all of them, after a certain period of time and selecting a new sample of establishments and/or commodities. Rotation is designed to keep the sample up to date. It also helps to alleviate the problems caused by sample depletion.

    Sampling error

    A measure of the chance of a difference between the results obtained from the units sampled and the results that would have been obtained from a complete enumeration of all units in the universe.

    Sampling frame

    The list of the units in the universe from which a sample of units is to be selected. It provides for each unit the details, such as the unit’s location, size, value, and type of exports and/or imports, required to pick the sample. Also referred to as the “survey frame.”

    Sauerbeck price index

    A price index defined as the weighted arithmetic average of the current to previous period price relatives using the values of the base period as weights. The price reference period is the previous period (that is, the period immediately before the current period), and the weight reference period is some other fixed period before the previous period. A time-series index is derived by chaining, which, because the weight reference period remains fixed, can result in a serious upward drift in the index when price changes are large and erratic.

    Scope

    The set of goods and services or transactions for which the index is intended to measure the price changes. In practice, certain goods and services may have to be excluded because it is too difficult, time-consuming, or costly to collect the required data on values or prices. The coverage of an index denotes the actual set of goods and services included, as distinct from the intended scope of the index. Also referred to as “domain.”

    Seasonal products

    Products that either (1) are not available on the market during certain seasons or periods of the year or (2) are available throughout the year but with regular fluctuations in their quantities and prices that are linked to the season or time of year. A product that satisfies (1) is said to be “strongly seasonal.” A product that satisfies (2) is said to be “weakly seasonal.”

    Sector

    A general term used to describe a group of establishments engaged in similar kinds of economic activity. A sector can be a subgroup of an economic activity—as in “coal mining sector”—or a group of economic activities—as in “service sector”—or a cross-section of a group of economic activities—as in “informal sector.” Also a specific term used in the SNA to denote one of the five mutually exclusive institutional sectors that group together institutional units on the basis of their principal functions, behavior, and objectives, namely: nonfinancial corporations, financial corporations, general government, nonprofit institutions serving households, and households.

    Services

    Outputs produced to order and that cannot be traded separately from their production. Ownership rights cannot be established over services, and by the time their production is completed they must have been provided to the consumers. However, as an exception to this rule, there is a group of industries, generally classified as service industries, some of whose outputs have characteristics of goods. These are the industries concerned with the provision, storage, communication, and dissemination of information, advice, and entertainment in the broadest sense of those terms. The products of these industries, where ownership rights can be established, may be classified as either goods or services depending on the medium by which these outputs are supplied.

    Shipment price

    The price at the time the order is delivered to the purchaser.

    SITC

    Standard International Trade Classification. An internationally agreed commodity classification for the compilation and dissemination of statistics on international merchandised trade. SITC commodity groupings reflect (1) the nature of the product and the materials used in its production, (2) the stage of processing, (3) marketing practices and the uses of the product, (4) the importance of the product in world trade, and (5) technological changes. The original SITC was published in 1951 and has been revised periodically. It was last revised in 2006 (SITC Rev.4). There is full correspondence between the five-digit basic headings of SITC Rev.4 and the six-digit sub-headings of HS07.

    SNA 2008

    System of National Accounts, 2008. A coherent, consistent, and integrated set of macroeconomic accounts, balance sheets, and tables based on a set of internationally agreed concepts, definitions, classifications, and accounting rules. The system first appeared in 1953 and since then has evolved, going through major revisions in 1968 and 1993. SNA 2008 is an update of SNA 1993, the version currently adhered to by most countries.

    SPDs

    Structured product descriptions. The generic product descriptions used to define the product specifications to be priced for the ICP. An SPD refers to a product cluster. It lists the technical and economic characteristics that products constituting the cluster can possess. A product cluster usually covers a narrow range of homogeneous products, but variation in their common set of characteristics is to be expected. A product can therefore be distinguished from others in the cluster by identifying its specific subset of characteristics. The subset provides the basis for a product specification should the product be selected for pricing. See “product line specification.”

    Specification

    A description or list of the characteristics that can be used to identify an individual sampled product to be priced. A tight specification is a fairly precise description of an item intended to narrow the range of items from which a price collector might choose, possibly reducing it to a unique item, such as a particular brand of television set identified by a specific code number. A loose definition is a generic description of a range of items that allows the price collector some discretion as to which particular item or model to select for pricing, such as color televisions sets of a particular screen size.

    Specification pricing

    The pricing methodology whereby a manageable sample of precisely specified products is selected, in consultation with each reporting establishment, for repeat pricing. Products are fully defined in terms of all characteristics that influence their transaction prices. The objective is to price to constant quality in order to produce an index showing pure price change.

    Splicing

    Introducing a replacement item and attributing any price change between the replacement item in the period it is introduced and the replaced item in the period prior to the introduction to the change in quality.

    Spot market price

    A generic term referring to any short-term sales agreement. Generally it refers to single-shipment orders with delivery expected in less than one month. Goods sold on this basis are usually off-the-shelf and not subject to customization. Spot market prices are subject to discounting and directly reflect current market conditions.

    Stage of processing

    The classification of goods and services according to their position in the chain of production. However, unlike the classification by stage of production, a product is allocated to only one stage even though it may occur in several stages. Goods and services are classified as either primary products, intermediate products, or finished products.

    Stage of production

    The classification of goods and services according to their position in the chain of production, but allowing for the multi-function nature of products. Unlike the classification by stage of processing, a product is allocated to each stage to which it contributes and not assigned solely to one stage. Goods and services are classified as primary products, intermediate products, and/or finished products.

    Stochastic approach

    The approach to index number theory that treats the observed price relatives as if they were a random sample drawn from a defined universe for which the mean can be interpreted as the general rate of inflation. The sample mean provides an estimate of the rate of inflation.

    Subsidies on products

    The subsidies on goods or services produced as the outputs of resident enterprises that become payable as the result of the production of those goods or services. They are payable per unit of good or service produced.

    Subsidized prices

    Prices that differ from market prices in that some significant portion of variable and/or fixed costs are covered by a revenue source other than the selling price.

    Substitution bias

    The bias that results when a fixed basket index is used. By definition, the quantities of the goods and services in the basket to be priced are fixed, and so the index cannot take into account the effects of substitutions made by exporters or importers in response to changes in relative prices. Exporters seeking to maximize revenue may shift to exporting items with above-average relative price increases and, as a result, an XPI with base period quantities will systematically understate average price increases. Importers seeking to minimize costs may shift to importing items with below-average relative price increases and, as a result, an MPI with base period quantities will systematically overstate average price increases. The direction of the bias will be reversed if current period quantities are used—that is, the XPI will systematically overstate average price increases and the MPI will systematically understate them. See “FIOPI,” “FOIPI,” and “true index.”

    Superlative index

    An index that is “exact” for a “flexible aggregator.” A flexible aggregator is a second-order approximation to an arbitrary cost, production, utility, or distance function. Exactness implies that a particular index number can be derived directly from a specific flexible aggregator. The Fisher price index, the Törnqvist price index, and the Walsh price index are superlative indices. Superlative indices are generally symmetric indices.

    Surcharge

    An addition to the list price of a good or a service. It is generally of short duration, reflecting unusual cost pressures affecting the producer; for example, a fuel surcharge for transport operators.

    Survey frame

    See “sampling frame.”

    SUTs

    Supply and use tables. SUTs are in the form of matrices that record how supplies of different kinds of goods and services originate from domestic industries and imports and how those supplies are allocated between various intermediate and final uses, including exports.

    Symmetric index

    An index that treats the two periods being compared symmetrically by attaching equal importance to the price and value data in both periods. The price and value data for both periods are entered into the index number formula in a symmetric or balanced way. The superlative price indices of Fisher, Törnqvist, and Walsh are symmetric indices, as are the pseudo-superlative price indices of Drobisch and Marshall-Edgeworth.

    Target index

    The theoretical index that compilers would choose to calculate in the ideal hypothetical situation in which they have complete information about prices and quantities in the two periods being compared. In practice, the target index is likely to be an economic index as approximated by a superlative price index (such as a Fisher, Törnqvist, or Walsh) or a basket or Lowe index (usually a Laspeyres) that has a clear meaning and can be easily explained to users.

    Taxes on products

    The taxes on goods or services produced as the outputs of resident enterprises that become payable as the result of the production of those goods or services. They are payable per unit of good or service produced.

    Terms of trade index

    The ratio of the export price index to the import price index: XPI/MPI. A terms of trade index shows the relationship between the prices at which a country sells its exports and the prices it pays for its imports. If the prices of a country’s exports rise relative to the prices of its imports, its terms of trade are said to have moved in a favorable direction, because, in effect, it now receives more imports for each unit it exports.

    Test approach

    See “axiomatic approach.”

    Time aggregation problem

    How to define and obtain the basic price and quantity for a precisely specified product included in a price index given that, during the time period under consideration, individual buyers may buy the same product at different prices and an individual seller may sell the same product at different prices.

    Time reversal test

    A test under the axiomatic approach that requires that if the prices and quantities in the two periods being compared are interchanged, the resulting price index is the reciprocal of the original price index. When an index satisfies this test, the same result is obtained whether the direction of change is measured forward in time from the first to the second period or backward from the second to the first period.

    Törnqvist price index

    A price index defined as the weighted geometric average of the current to base period price relatives in which the weights are the simple unweighted arithmetic averages of the value shares in the two periods. It is a symmetric index and a superlative index. Also known as the “Törnqvist-Theil price index.”

    Total factor productivity

    Relates a measure of output to a measure of combined primary inputs. Rates of change of multi-factor productivity are typically measured residually as that change in output that cannot be accounted for by the change in combined inputs.

    Transaction

    The buying and selling of a good or service on terms mutually agreed by the buyer and seller.

    Transaction price

    See “market price.”

    Transfer price

    A price adopted for bookkeeping purposes that is used to value transactions between affiliated enterprises integrated under the same management at artificially high or low levels in order to effect an unspecified income payment or capital transfer between those enterprises. See “intra-company transfer price.”

    Transitivity

    See “circularity.”

    “True” index

    A theoretically defined index that lies between the Laspeyres price index and the Paasche price index. For a theoretical XPI, the Laspeyres price index is the lower bound and the Paasche price index is the upper bound. For a theoretical MPI, the situation is reversed: the Paasche price index is the lower bound and the Laspeyres price index is the upper bound. See “FIOPI,” “FOIPI,” and “substitution bias.”

    Unequivocal price index

    See “‘pure’ price index.”

    Unequivocal quantity index

    See “‘pure’ quantity index.”

    Unilateral price index

    One approach to index numbers involves decomposing a value aggregate for one period into two numbers: one representing the price level in the period and the other representing the quantity level in the period. The resulting price index is called a “unilateral price index.” “Unilateral” refers to the assumption that the price index depends only on price and quantity data of the period under consideration. It is also called an “absolute index number.”

    Unique product

    A product that is manufactured only once to the specification of an individual customer.

    Unit value bias

    The ratio of a unit value index to a price index calculated with an acceptable index number formula such as the Fisher price index. The term “bias” assumes a systematic divergence. If the divergence is not systematic, then the term “error” is more appropriate. See “bias.”

    Unit value index

    An index that measures the change in the average unit value of items comprising an individual commodity class. The items may not be homogeneous, and the unit value index may therefore be affected by changes in the mix of items (compositional quality and quantity changes) as well as by changes in their prices. Unit value indices are not price indices, but serve as surrogates for price indices. A unit value elementary index, PU, is given for a price comparison between the current period 1 and reference period 0 over m = 1, . . . . , M items in period 1 and over n = 1, . . . , N items in period 0 by:

    quantities are given respectively as pm1 and qm1 for period 1, and pn0 and qn0 for period 0.

    Unit value “mix” problem

    That the change in the value of a unit value index, thereby implying a “price change,” arises from a change in the relative quantities of the items covered without any change in their prices.

    Universe

    For an XPI, the population of exporters and exports to be sampled. For an MPI, the population of importers and imports to be sampled.

    Upper-level index

    See “higher-level index.”

    Value

    At the level of a single homogeneous good or service, value is equal to the price per unit of quantity multiplied by the number of quantity units of that good or service. Unlike price, value is independent of the choice of quantity unit. Values are expressed in terms of a common unit of currency and are commensurate and additive across different products. Quantities, on the other hand, are not commensurate and additive across different products even when measured in the same kind of physical units.

    Value added

    Gross value added is the value of output less the value of intermediate consumption. It is a measure of the contribution to GDP made by an individual producer, industry, or sector. It is the source from which the primary incomes of the SNA are generated. Net value added is the value of output less the values of both intermediate consumption and consumption of fixed capital.

    Value updating

    See “price updating.”

    Value weights

    The measures of the relative importance of products in the index. The weight reference period values or shares of the various elementary aggregates covered by the index. Being commensurate and additive across different products, value weights can be used at aggregation levels above the detailed product level. See “quantity weights.”

    VAT

    Value-added tax. A wide-ranging tax usually designed to cover most or all goods and services. It is collected in stages by enterprises that are obliged to pay to government only the difference between the VAT on their sales and the VAT on their purchases for intermediate consumption or capital formation. VAT is not usually charged on exports.

    Virtual corporation

    A partnership among several enterprises sharing complementary expertise created expressly to produce a product with a short–prospective life span, with the production of the product being controlled through a computerized network. The corporation is disbanded upon the conclusion of the product’s life span.

    Volume index

    The weighted average of the proportionate changes in the quantities of a specified set of goods and services between two periods of time. The quantities compared must be homogeneous, while the changes for the different goods and services must be weighted by their economic importance as measured by their values in one or both periods.

    Walsh price index

    A price index defined as the change in the value of a fixed intermediate basket of quantities. The quantities of the intermediate basket are geometric averages of the quantities of the base and current periods. It is a symmetric index and a superlative index.

    Weight reference period

    The period of which the value shares serve as weights for a Young index, or of which the quantities make up the basket for a Lowe index. It does not have to have the same duration as the periods for which the index is calculated, and in the case of XMPIs is typically longer, a year or more, rather than a month or quarter. There may be no weight reference period when the value shares for the two periods are averaged, as in a Törnqvist index, or when the quantities are averaged, as in a Marshall-Edgeworth index and a Walsh index. See also “base period.”

    Weights

    A set of numbers summing to unity that are used to calculate averages. Value shares sum to unity by definition and are used to weight price relatives or elementary price indices when these are averaged to obtain price indices or higher-level indices. Although quantities are frequently described as weights, they cannot serve as weights for the prices of different types of products whose quantities are not commensurate and that use different units of quantity that are not additive. The term “quantity weights” is generally used loosely to refer to the quantities that make up the basket of goods and services covered by an index and included in the value weights. See “quantity weights” and “value weights.”

    Wholesale price index

    A measure that reflects changes in the prices paid for goods at various stages of distribution up to the point of retail. It can include prices of raw materials for intermediate and final consumption, prices of intermediate or unfinished goods, and prices of finished goods. The goods are usually valued at purchasers’ prices. For historical reasons, some countries call their PPI a “wholesale price index,” even though the index no longer measures changes in wholesale prices.

    XMPIs

    Export and import price indices. The export price index (XPI) measures the average change over time in the prices of the goods and services supplied by residents of the economic territory of a country and used by non-residents (the rest of the world). The import price index (MPI) measures the average change over time in the prices of goods and services supplied by nonresidents (the rest of the world) and used by residents of the economic territory of a country.

    XPI

    Export price index. See “XMPIs.”

    Year-over-year indices

    Year-over-year monthly indices: Indices in which a given month in the current period is compared with the corresponding month in the base period. For example, if the current period is 2001 and the base period is 2000, January 2001 would be compared with January 2000, February 2001 with February 2000, March 2001 with March 2000, etc. There are in effect 12 separate series of indices, one for each month of the year. Year-over-year monthly indices are a means of dealing with seasonal variation. It is assumed that the patterns of seasonal variation remain the same month by month, year after year.

    Year-on-year annual indices: The weighted average of the 12 year-over-year monthly indices. The weights are monthly value (revenue) shares of the base year or the current year or the average of the two, depending on the index number formulation.

    Young index

    This manual specifically refers to the Young price index as a weighted arithmetic average of price ratios between the current period t and the price reference period 0, where the weights are value shares in a (usually) preceding period b.

    More generally, a Young index can be defined as a weighted arithmetic average of price ratios between the current period t and the price reference period, where the weights are value shares (sn) that sum to 1. The Young index is thus defined as

    Special cases include the Laspeyres index when Sn=S0=p0q0Σp0q0 and the Paasche index when sn are hybrid weights using period t quantities valued at period 0 prices, that is, Sn=S0tp0qtΣp0qt.

    Appendix: Some basic index number formulas and terminology

    1. A basket price index (called here a Lowe price index after the index number pioneer who first proposed this general type of index) is an index of the form1

    which compares the prices of period t with those of (an earlier) period 0, using a certain specified quantity basket. The family of Lowe indices includes some well-known indices as special cases:

    • When qn=qn0,, we get the Laspeyres index;

    • When qn=qnt,, we get the Paasche index;

    • When qn=(qn0+qn1)/2,, we get the Marshall-Edgeworth index; and

    • When qn=(qn0qnt)1/2,, we get the Walsh index.

    In practice, official statistical agencies frequently work with a Lowe index in which qn=qnb, where b denotes some period before 0.

    2. A useful feature of a basket price index for period t relative to period 0 is that it can be decomposed, or factored, into the product of two or more indices of the same type: for instance, as the product of an index for period t – 1 relative to period 0 and an index for period t relative to period t – 1. Formally,

    The index on the right side of equation (G.2) is described as a “two-stage index.” It is identical to the single-basket index that compares period t directly with period 0, provided the same set of prices is available and used in all three periods, 0, t – 1, and t.

    In particular, when qn=qn0,, equation (G.2) turns into

    The left side of equation (G.3) is a direct Laspeyres index. Note that only the first of the indices that make up the “two-stage Laspeyres” index on the right side is itself a Laspeyres index, the second being a Lowe index for period t relative to period t – 1 that uses the quantity basket of period 0 (not t – 1). Some official statistical agencies describe the two-stage Laspeyres index given in equation (G.3) as a “modified Laspeyres” index.

    3. In a time-series context, say when t runs from 1 to T, the series

    is termed a series of fixed-basket price indices. In particular, when qn=qn0,, we get a series of Laspeyres indices.

    4. At period T, one could change to a new quantity basket q’ and calculate from this period onward

    To relate the prices of periods T + 1, T + 2, T + 3, . . . . to those of period 0, chain linking can be used to transform (G.5) into a series of the form

    This could be termed a series of chain-linked fixed-basket price indices. In particular, when qn=qn0 and, qn=qnT we get a series of chain-linked Laspeyres indices. Because the basket was changed at period T, the adjective “fixed” applies literally over only a certain number of time intervals. The basket was fixed from period 1 to period T and is fixed again from period T + 1 onward. When the time intervals during which the basket is kept fixed are of the same length, such as one, two, or five years, this feature can be made explicit by describing the index as an annual, biannual, or five-yearly chain-linked fixed-basket price index.

    5. A weighted arithmetic2-average(-type) price index (called here a Young price index after another index number pioneer) is an index of the form

    which compares the prices of period t with those of period 0, using a certain set of weights adding up to 1. Note that any basket price index in the form of equation (G.1) can be expressed in the form of equation (G.7), because

    In particular, when

    that is, period 0 value shares, equation (G.7) turns into the Laspeyres index. When

    that is, hybrid period (0, t) value shares, we get the Paasche index. One could also think of setting

    that is, period b value shares.3

    Instead of working with equation (G.11), one frequently works with

    that is, price-updated period b value shares.

    Note that hybrid value shares, such as equation

    (G.10) or (G.12), typically are not constructed by multiplying sums of prices of one period times quantities of another period. They must be constructed using price relatives and actual expenditure shares, as in the first part of equation (G.12).

    6. In a time-series context, when t runs from 1 to T, the series

    is termed a series of fixed weighted arithmetic-average price indices. In particular, when the weights are equal to the period 0 expenditure shares, we get a series of Laspeyres indices, and when the weights are equal to the price-updated period b expenditure shares, we get a series of Lowe indices in which the quantities in the basket are those of period b.

    7. In period T, one could change to a new set of weights w’, and calculate from this period onward

    or, using linking to relate the prices of periods T + 1, T + 2, T + 3, . . . . to those of period 0,

    This could be termed a series of linked fixed-weighted arithmetic-average price indices. In particular, when wn=sn0 and wn=SnT,, we get a series of chain-linked Lowe indices. When wn=snb(pn0/pnb)/ΣSnb(pn0/pnb) and wn=Snb(pnT/pnb)/ΣSnb(pnT/pnb) for some later period b’, we get a series of chain-linked Laspeyres indices.

    8. Again, because the weights were changed at period T, the adjective “fixed” applies literally over only certain time intervals. The weights were fixed from period 1 to period T and are again fixed from period T + 1 onward. When the time intervals during which the weights are kept fixed are of the same length, this feature can be made explicit by adding a temporal adjective, such as biannual or five-yearly. When the intervals are annual, the term “chain-linking” is used.

    The sums are understood to be running over all items n.

    To distinguish from geometric or other kinds of average.

    This manual specifically refers to this as a Young index.

    Bibliography

      Abraham, Katherine G., JohnS. Greenlees, and BrentR. Moulton, 1998, “Working to Improve the Consumer Price Index,” Journal of Economic Perspectives, Vol. 12 (Winter), pp. 2736.

      Aczél, J., 1987, A Short Course on Functional Equations: Based Upon Recent Applications to the Social and Behavioral Sciences (Dordrecht, Netherlands: Reidel).

      Aizcorbe, Ana, CarolCorrado, and MarkDoms,2001, “Constructing Price and Quantity Indexes for High Technology Goods” (Washington: Industrial Output Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, July). Also available asWhen Do Matched-Model and Hedonic Techniques Yield Similar Measures?Federal Reserve Bank of San Francisco Working Paper No. 2003-14. Available via the Internet:http://www.frbsf.org/publications/economics/papers/index.php?2005.

      Allen, Robert D., and W.Erwin Diewert,1981, “Direct Versus Implicit Superlative Index Number Formulae,” Review of Economics and Statistics, Vol. 63 (August), pp. 43035.

      Alterman, William, 1991, “Price Trends in U.S. Trade: New Data, New Insights,” in International Economic Transactions, NBER Studies in Income and Wealth Vol. 55, ed. by PeterHooper and J. DavidRichardson (Chicago: University of Chicago Press).

      Alterman, W.F., W. ErwinDiewert, and RobertC. Feenstra,eds., 1999, International Trade Price Indexes and Seasonal Commodities (Washington: Bureau of Labor Statistics).

      Alterman, William, DavidS. Johnson, and JohnGoth,1987, “BLS Publishes Average Exchange Rate and Foreign Currency Price Indexes,” Monthly Labor Review(December), pp. 4749.

      Anderson, Richard G., BarryE. Jones, and TravisNesmith,1997, “Building New Monetary Services Indexes: Concepts, Data and Methods,” Federal Reserve Bank of St. Louis Review, Vol. 79 (January/February), pp. 5383.

      Angermann, Oswald, 1980, “External Terms of Trade of the Federal Republic of Germany Using Different Methods of Deflation,” Review of Income and Wealth, Vol. 26 (December), pp. 36785.

      Archibald, Robert B., 1977, “On the Theory of Industrial Price Measurement: Output Price Indexes,” Annals of Economic and Social Measurement, Vol. 6, No. 1, pp. 5772.

      Arguea, N.M., C.Hsiao, and G.A.Taylor,1994, “Estimating Consumer Preferences Using Market Data—An Application to U.S. Automobile Demand,” Journal of Applied Econometrics, Vol. 9 (January–March), pp. 118.

      Armknecht, Paul A., WalterF. Lane, and KennethJ. Stewart,1997, “New Products and the U.S. Consumer Price Index,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyF. Bresnahan and RobertJ. Gordon (Chicago: University of Chicago Press), pp. 37591.

      Armknecht, Paul A., and FenellaMaitland-Smith,1999, “Price Imputation and Other Techniques for Dealing with Missing Observations, Seasonality and Quality Change in Price Indices,” IMF Working Paper 99/78 (Washington: International Monetary Fund).

      Armknecht, Paul A., and FenellaMaitland-Smith,2002, “Spurious Inflation: The Legacy of Laspeyres and Others,” Quarterly Review of Economics and Finance, Vol. 42 (Autumn) pp. 52942.

      Australian Bureau of Statistics, 1995, “Producer and International Trade Price Indexes,”Catalogue No. 6419.0 (Canberra). Available via the Internet:www.abs.gov.au.

      Australian Bureau of Statistics, 2001, “Stages of Production Producer Price Indexes,”Australia, Catalogue No. 6426.0 (Canberra). Available via the Internet:www.abs. gov.au.

      Baldwin, Andrew, 1990, “Seasonal Baskets in Consumer Price Indexes,” Journal of Official Statistics, Vol. 6 (September), pp. 25173.

      Baldwin, Andrew, 2002, “The Redesign of the Farm Product Price Index: Questions and Answers” (Ottawa: Industry Measures and Analysis Division, Statistics Canada, May).

      Balk, Bert M., 1980a, Seasonal Products in Agriculture and Horticulture and Methods for Computing Price Indices, Statistical Studies No. 24 (The Hague: Netherlands Central Bureau of Statistics).

      Balk, Bert M., 1980b, “Seasonal Commodities and the Construction of Annual and Monthly Price Indexes,” Statistical Papers, Vol. 21 (June), pp. 11016.

      Balk, Bert M., 1980c, “A Method for Constructing Price Indices for Seasonal Commodities,” Journal of the Royal Statistical Society, Series A, Vol. 143, No. 1 pp. 6875.

      Balk, Bert M., 1981, “A Simple Method for Constructing Price Indices for Seasonal Commodities,” Statistical Papers, Vol. 22 (March), pp. 7278.

      Balk, Bert M., 1983, “Does There Exist a Relation Between Inflation and Relative Price-Change Variability? The Effect of the Aggregation Level,” Economics Letters, Vol. 13, (No. 2–3), pp. 17380.

      Balk, Bert M., 1985, “A Simple Characterization of Fisher’s Price Index,” Statistical Papers, Vol. 26 (December), pp. 5963.

      Balk, Bert M., 1989, “Changing Consumer Preferences and the Cost-of-Living Index: Theory and Nonparametric Expressions,” Journal of Economics, Vol. 50 (June), pp. 15769.

      Balk, Bert M., 1994, “On the First Step in the Calculation of a Consumer Price Index,” paper prepared for the International Conference on Price Indices, First Meeting hosted by StatisticsCanada, Ottawa, October 31–November 4.

      Balk, Bert M., 1995, “Axiomatic Price Index Theory: A Survey,” International Statistical Review, Vol. 63, pp. 6993.

      Balk, Bert M., 1996a, “A Comparison of Ten Methods for Multilateral International Price and Volume Comparison,” Journal of Official Statistics, Vol. 12 (June), pp. 199222.

      Balk, Bert M., 1996b, “Consistency-in-Aggregation and Stuvel Indices,” Review of Income and Wealth, Vol. 42 (September), pp. 35363.

      Balk, Bert M., 1998a, Industrial Price, Quantity, and Productivity Indices: The Micro-Economic Theory and an Application (Boston: Kluwer Academic).

      Balk, Bert M., 1998b, “On the Use of Unit Value Indices as Consumer Price Subindices,” paper prepared for the International Conference on Price Indices, Fourth Meeting hosted by the Bureau of Labor Statistics, Washington, April 22–24.

      Balk, Bert M., 2000a, “Divisia Price and Quantity Indexes 75 Years After” (unpublished;Voorburg, Netherlands: Department of Statistical Methods, Statistics Netherlands).

      Balk, Bert M., 2000b, “On Curing the CPI’s Substitution and New Goods Bias,” Research Paper 0005 (Voorburg, Netherlands: Department of Statistical Methods, Statistics Netherlands). Presented at the Fifth Meeting of the International Working Group on Price Indices, 25–27August 1999, Reykjavik; at the Joint ECE/ILO Meeting on Consumer Price Indices, 3–5November1999, Geneva;and at the Fourth Conference on Methodological Issues in Official Statistics, 12–13October2000, Stockholm.

      Balk, Bert M., 2001, “Aggregation Methods in International Comparisons: What Have We Learned?”Report Series Research in Management ERS-2001-41-MKT, Erasmus Research Institute of Management (Rotterdam: Erasmus University). Available via the Internet:www.rsm.nl/portal/pls/portal/xopus_public.download_document?p_ guid=298255C5FD4A09A2E0401BAC4D010CA9.

      Balk, Bert M., 2004, “Decompositions of Fisher Indexes,” Economics Letters, Vol. 82 (January), pp. 10713.

      Balk, Bert M., 2005, “Price Indexes for Elementary Aggregates: The Sampling Approach,” Journal of Official Statistics, Vol. 21 (December), pp. 67599.

      Balk, Bert M., and W. ErwinDiewert,2001, “A Characterization of the Törnqvist Price Index,” Economics Letters, Vol. 72 (September), pp. 27981.

      Balk, Bert M., and H.M.P.Kersten,1986, “On the Precision of Consumer Price Indices Caused by the Sampling Variability of Budget Surveys,” Journal of Economic and Social Measurement, Vol. 14, pp. 1935.

      Bartik, Timothy J., 1988, “Measuring the Benefits of Amenity Improvements in Hedonic Price Models,” Land Economics, Vol. 64 (May), pp. 17283.

      Barnett, William, 1978, “The User Cost of Money,” Economics Letters, Vol. 1, No. 22, pp. 14549.

      Barnett, William, 1980, “Economic Monetary Aggregates: An Application of Index Number and Aggregation Theory,” Journal of Econometrics, Vol. 14 (September), pp. 1148.

      Bean, L.H., and O.C.Stine,1924, “Four Types of Index Numbers of Farm Prices,” Journal of the American Statistical Association, Vol. 19 (March), pp. 3035.

      Becker, Gary S., 1965, “A Theory of the Allocation of Time,” Economic Journal, Vol. 75 (September), pp. 493517.

      Bénabou, Roland, and RobertGertner,1993, “Search with Learning from Prices: Does Increased Inflationary Uncertainty Lead to Higher Markups?Review of Economic Studies, Vol. 60 (January), pp. 6994.

      Berndt, Ernst R., 1983, “Quality Adjusted Prices, Hedonics, and Modern Empirical Demand Theory,” in Price Level Measurement: Proceedings from a Conference Sponsored by Statistics Canada, ed. by W. ErwinDiewert and C.Montmarquette(Ottawa:Statistics Canada), pp. 81763.

      Berndt, Ernst R., 1991, The Practice of Econometrics: Classic and Contemporary (Reading Massachusetts: Addison–Wesley).

      Berndt, Ernst R., LindaT. Bui,DavidH. Lucking-Reiley, and GlenL. Urban,1997, “The Roles of Marketing, Product Quality, and Price Competition in the Growth and Composition of the U.S. Antiulcer Drug Industry,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyF. Bresnahan and RobertJ. Gordon (Chicago: University of Chicago Press), pp. 27732.

      Berndt, Ernst R., ZviGriliches, and NealJ. Rappaport,1995, “Econometric Estimates of Price Indexes for Personal Computers in the 1990’s,” Journal of Econometrics, Vol. 68 (July), pp. 24368.

      Berndt, Ernst R., ZviGriliches, and JoshuaG. Rosett,1993, “Auditing the Producer Price Index: Micro Evidence from Prescription Pharmaceutical Preparations,” Journal of Business and Economic Statistics, Vol. 11 (July), pp. 25164.

      Berndt, Ernst R., MargaretK. Kyle, and DavinaC. Ling,2003, “The Long Shadow of Patent Expiration: Generic Entry and RX-to-OTC Switches,” in Scanner Data and Price Indexes, NBER Studies in Income and Wealth Vol. 64, ed. by RobertC. Feenstra and MatthewD. Shapiro (Chicago: University of Chicago Press), pp. 22973.

      Berry, Steven, JamesLevinsohn, and ArielPakes,1995, “Automobile Prices in Market Equilibrium,” Econometrica, Vol. 63 (July), pp. 84190. Also published as NBER Working Paper No. 4264, July1996 (Cambridge, Massachusetts: National Bureau of Economic Research). Available via the Internet:www.nber.org/papers/w4264.

      Blackorby, Charles, DanielPrimont, and R. RobertRussell,1978, Duality, Separability, and Functional Structure: Theory and Economic Applications (New York: Elsevier North-Holland).

      Bodé, Ben, and Jan vanDalen,2001, “Quality-Corrected Price Indexes of New Passenger Cars in the Netherlands, 1990–1999,” paper prepared for the International Conference on Price Indices, Sixth Meeting, hosted by the Australian Bureau of Statistics, Canberra, April 2–6.

      Bortkiewicz, L.v., 1923, “Zweck und Struktur einer Preisindexzahl,” Nordisk Statistisk Tidskrift, Vol. 2, pp. 369408.

      Boskin, MichaelJ.S., chair,1996, “Toward a More Accurate Measure of the Cost of Living,”Final Report to the Senate Finance Committee, Advisory Commission to Study the Consumer Price Index, Washington, December4.

      Boskin, MichaelJ.S., chair,EllenR. Dulberger,RobertJ. Gordon,ZviGriliches, and DaleW. Jorgenson,1998, “Consumer Prices, the Consumer Price Index, and the Cost of Living,” Journal of Economic Perspectives, Vol. 12 (Winter), pp. 326.

      Bowley, Arthur L., 1899, “Wages, Nominal and Real,” in Dictionary of Political Economy, Vol. 3, ed. by R.H. InglisPalgrave (London: Macmillan), pp. 64051.

      Bowley, Arthur L., 1901, Elements of Statistics (London: P.S. King & Son).

      Bowley, Arthur L., 1919, “The Measurement of Changes in the Cost of Living,” Journal of the Royal Statistical Society, Vol. 82, pp. 34372.

      Bowley, Arthur L., 1921, “An Index of the Physical Volume of Production,” Economic Journal, Vol. 31 (June), pp. 196205.

      Bowley, Arthur L., 1922, “The Definition of National Income,” Economic Journal, Vol. 32 (June), pp. 111.

      Bradley, Ralph, 2005, “Pitfalls of Using Unit Values as a Price Measure or Price Index,” Journal of Economic and Social Measurement, Vol. 30, No. 1, pp. 3961.

      Bradley, Ralph, BillCook, SylviaG. Leaver, and BrentR. Moulton,1997, “An Overview of Research on Potential Uses of Scanner Data in the U.S. CPI,” paper prepared for the International Conference on Price Indices, Third Meeting, hosted by Statistics Netherlands, Voorburg, April 16–18.

      Bresnahan, Timothy F., 1997, “Comment” onJerryR. Hausman’sValuation of New Goods under Perfect and Imperfect Conditions,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyF. Bresnahan and RobertJ. Gordon (Chicago: University of Chicago Press).

      Bucknall, Robert, MarkusSova, and JohnWood,2005Estimating Standard Errors of Movements in Producer Price Indices,” in Proceedings of the GSS Methodology Conference 2005(London:Office for National Statistics). Available atwww.statistics.gov.uk/events/gss2005/agenda.asp.

      Bureau of the Census, 2002, “U.S. Goods Trade: Imports and Exports by Related Parties; 2001,” United States Department of Commerce News, Economics and Statistics Information, Bureau of the Census, May 7. Available via the Internet:www.census.gov/foreign-trade/Press-Release/2001pr/aip/rp01.pdf.

      Burns, Arthur F., 1930, “The Measurement of the Physical Volume of Production,” Quarterly Journal of Economics, Vol. 44 (February), pp. 24262.

      Carli, Gian-Rinaldo, 1804, “Del valore e della proporzione de’ metalli monetati,” in Scrittori classici italiani di economia politica, Vol. 13, by Domenico diGennaro Cantalupo,GiovanniRinaldo Carli,PietroVerri (Milan: G.G. Destefanis), pp. 297366. Originally published in 1764.

      Carruthers, A.G., D.J.Sellwood, and P.W.Ward,1980, “Recent Developments in the Retail Prices Index,” The Statistician, Vol. 29 (March), pp. 132.

      Cas, Alexandra, and ThomasK. Rymes,1991, On Concepts and Measures of Multifactor Productivity in Canada 1961–1980 (London: Cambridge University Press).

      Cassel, Eric, and RobertMendelsohn,1985, “On the Choice of Functional Forms for Hedonic Price Equations: Comment,” Journal of Urban Economics, Vol. 18 (September), pp. 13542.

      Caves, Douglas W., LauritsR. Christensen, and W. ErwinDiewert,1982a, “Multilateral Comparisons of Output, Input and Productivity Using Superlative Index Numbers,” Economic Journal, Vol. 92 (March), pp. 7386.

      Caves, Douglas W., LauritsR. Christensen, and W. ErwinDiewert,1982b, “The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity,” Econometrica, Vol. 50, (November), pp. 13931414.

      Cecchetti, Stephen G., 1997, “Measuring Short-Run Inflation for Central Bankers,” Federal Reserve Bank of St. Louis Review, Vol. 79 (May/June), pp. 14355.

      Christensen, Laurits R., DaleW. Jorgenson, and L.J.Lau,1971, “Conjugate Duality and the Transcendental Logarithmic Production Function,” Econometrica, Vol. 39 (July), pp. 25556.

      Clements, Kenneth W., and H.Y.Izan,1981, “A Note on Estimating Divisia Index Numbers,” International Economic Review, Vol. 22 (October), pp. 74547.

      Clements, Kenneth W., and H.Y.Izan,1987, “The Measurement of Inflation: A Stochastic Approach,” Journal of Business and Economic Statistics, Vol. 5 (July), pp. 33950.

      Cobb, Charles W., and PaulH. Douglas,1928, “A Theory of Production,” American Economic Review, Vol. 18 (March), pp. 13965.

      Cochran, William G., 1977, Sampling Techniques (New York: Wiley;3rd ed.).

      Cockburn, Iain M., and AslamH. Anis,1998, “Hedonic Analysis and Arthritic Drugs,” NBER Working Paper No. 6574 (Cambridge, Massachusetts: National Bureau of Economic Research). Available via the Internet:www.nber.org/papers/w6574.

      Coggeshall, F., 1886, “The Arithmetic, Geometric, and Harmonic Means,” Quarterly Journal of Economics, Vol. 1 (October), pp. 8386.

      Commission of the European Communities (Eurostat), International Monetary Fund, Organisation for Economic Cooperation and Development, United Nations, and World Bank, 1993, System of National Accounts 1993 (New York: United Nations).

      Commission of the European Communities, International Monetary Fund, Organization for Economic Cooperation and Development, United Nations, and World Bank, 2008, System of National Accounts 2008, Volume 1 (New York: United Nations). Available via the Internet:http://unstats.un.org/unsd/sna1993/draftingphase/ChapterList.asp.

      Cope, Ian, and DavidFreeman,1998, “Improving the Quality of the Producer Price Index,” Economic Trends, No. 541, pp. 6374.

      Copithorne, L., 1976, “La théorie des prix des transfert internes des grandes sociétés,” L’actualité économique, Vol. 52, pp. 32452.

      Court, Andrew T., 1939, “Hedonic Prices with Automobile Examples,” in The Dynamics of Automobile Demand (New York: General Motors Corporation), pp. 99117.

      Court, L.M., and H.G.Lewis,1942–43, “Production Cost Indices,” Review of Economic Studies, Vol. 10 (Winter), pp. 2842.

      Cropper, Maureen L., LelandB. Deck, and KennethE. McConnell,1988, “On the Choice of Functional Form for Hedonic Price Functions,” Review of Economics and Statistics, Vol. 70 (Nov), pp. 66875.

      Crump, Norman, 1924, “The Interrelation and Distribution of Prices and Their Incidence upon Price Stabilization,” Journal of the Royal Statistical Society, Vol. 87 (March), pp. 167219.

      Curry, Bruce, PeterMorgan, and MickSilver,2001, “Hedonic Regressions: Misspecification and Neural Networks,” Applied Economics, Vol. 33 (April), pp. 65971.

      Czinkota, Michael R., and IlkkaRonkainen,1997, “International Business and Trade in the Next Decade: Report from a Delphi Study,” Journal of International Business Studies, Vol. 28 (December), pp. 82744.

      Dalén, Jörgen, 1992, “Computing Elementary Aggregates in the Swedish Consumer Price Index,” Journal of Official Statistics, Vol. 8 (June), pp. 12947.

      Dalén, Jörgen, 1994, “Sensitivity Analyses for Harmonising European Consumer Price Indices,” paper presented at the International Conference on Price Indices, First Meeting, hosted by Statistics Canada, Ottawa, October 31–November 4.

      Dalén, Jörgen, 1997, “Experiments with Swedish Scanner Data,” paper presented at the International Conference on Price Indices, Third Meeting, hosted by Statistics Netherlands, Voorburg, April 16–18.

      Dalén, Jörgen, 1998, “On the Statistical Objective of a Laspeyres’ Price Index,” paper prepared for the International Conference on Price Indices, Fourth Meeting, hosted by the Bureau of Labor Statistics, Washington, April 22–24.

      Dalén, Jörgen, 2001, “Statistical Targets for Price Indexes in Dynamic Universes,” paper presented at the International Conference on Price Indices, Sixth Meeting, hosted by the Australian Bureau of Statistics, Canberra, April 2–6.

      Davies, George R., 1924, “The Problem of a Standard Index Number Formula,” Journal of the American Statistical Association, Vol. 19, pp. 18088.

      Davies, George R., 1932, “Index Numbers in Mathematical Economics,” Journal of the American Statistical Association, Vol. 27, pp. 5864.

      deHaan, Jan, 2001, “Generalised Fisher Price Indexes and the Use of Scanner Data in the CPI,” paper presented at the International Conference on Price Indices, Sixth Meeting, hosted by the Australian Bureau of Statistics, Canberra, April 2–6.

      deHaan, 2003, “Direct and Indirect Time Dummy Approaches to Hedonic Price Measurement,” paper presented at the International Conference on Price Indices, Seventh Meeting, hosted by INSEE, Paris, May 27–29.

      deHaan, 2004, “Estimating Quality-Adjusted Unit Value Indexes: Evidence from Scanner Data,” paper presented at the Seventh EMG Workshop, Sydney, December 12–14. Also presented at the SSHRC International Conference on Index Number Theory and the Measurement of Prices and Productivity, Vancouver, June 30–July 3.

      deHaan, 2007, “Hedonic Price Indexes: A Comparison of Imputation, Time Dummy, and Other Approaches,” paper presented at the International Conference on Price Indices, Tenth Meeting, hosted by Statistics Canada, Ottawa, October 9–12. Available at:www.ottawagroup2007.ca/ogo_r003_e.htm.

      deHaan, and EddyOpperdoes, 1997, “Estimation of the Coffee Price Index Using Scanner Data: The Choice of the Micro Index,” paper presented at the International Conference on Price Indices, Third Meeting, hosted by Statistics Netherlands, Voorburg, April 16–18.

      deHaan, and EddyOpperdoes, and C.M.Schut,1999, “Item Selection in the Consumer Price Index: Cut-Off Versus Probability Sampling,” Survey Methodology, Vol. 25 (June), pp. 3144.

      Debreu, Gérard, 1952, “A Social Equilibrium Existence Theorem,” Proceedings of the National Academy of Sciences, Vol. 38 (October 15), pp. 88693.

      Debreu, Gérard, 1959, Theory of Value: An Axiomatic Analysis of Economic Equilibrium (New York: Wiley).

      Decoster, Renaud, 2003a, “Import and Export Price Indices: A Comparison of Import Unit Value Indices and Import Specific Price Indices for Four EU Member States,”Second Report, Study Performed for Eurostat Unit C-4: Methodology, Nomenclature and Statistics of External and Intra-Community Trade (Paris: PLANISTAT Europe).

      Decoster, Renaud, 2003b, Import and Export Price Indices: Final Report, Study Performed for Eurostat Unit 0074 C-4: Methodology, Nomenclature and Statistics of External and Intra-Community Trade (Paris: PLANISTAT Europe).

      Denny, M., 1974, “The Relationship Between Functional Forms for the Production System,” Canadian Journal of Economics, Vol. 7 (February), pp. 2131.

      Diewert, W. Erwin, 1973, “Functional Forms for Profit and Transformation Functions,” Journal of Economic Theory, Vol. 6 (June), pp. 284316.

      Diewert, W. Erwin, 1974a, “Applications of Duality Theory,” in Frontiers of Quantitative Economics, Vol. II, ed. by M.D.Intrilligator and D.A.Kendrick (Amsterdam: North-Holland), pp. 10671. Available via the Internet:www.econ.ubc.ca/diewert/theory.pdf.

      Diewert, W. Erwin, 1974b, “Functional Forms for Revenue and Factor Requirements Functions,” International Economic Review, Vol. 15 (February), pp. 11930.

      Diewert, W. Erwin, 1974c, “Intertemporal Consumer Theory and the Demand for Durables,” Econometrica, Vol. 42 (May), pp. 497516.

      Diewert, W. Erwin, 1976, “Exact and Superlative Index Numbers,” Journal of Econometrics, Vol. 4 (May), pp. 1145.

      Diewert, W. Erwin, 1978, “Superlative Index Numbers and Consistency in Aggregation,” Econometrica, Vol. 46 (July), pp. 883900.

      Diewert, W. Erwin, 1980, “Aggregation Problems in the Measurement of Capital,” in The Measurement of Capital, NBER Studies in Income and Wealth Vol. 45, ed. by DanUsher (Chicago: University of Chicago Press), pp. 433528.

      Diewert, W. Erwin, 1983a, “The Theory of the Output Price Index and the Measurement of Real Output Change,” in Price Level Measurement: Proceedings from a Conference Sponsored by Statistics Canada, ed. by W.E.Diewert and C.Montmarquette(Ottawa:Statistics Canada) pp. 10491113.

      Diewert, W. Erwin, 1983b, “The Treatment of Seasonality in a Cost of Living Index,” in Price Level Measurement: Proceedings from a Conference Sponsored by Statistics Canada, ed. by W. ErwinDiewert and C.Montmarquette (Ottawa:Statistics Canada), pp. 101945.

      Diewert, W. Erwin, 1985, “Transfer Pricing and Economic Efficiency,” in Multinationals and Transfer Pricing, Croom Helm Series in International Business, ed. by A.M.Rugman and L.Eden (London: Croom Helm), pp. 4781.

      Diewert, W. Erwin, 1990, “The Theory of the Cost-of-Living Index and the Measurement of Welfare Change,” in Price Level Measurement, Contributions to Economic Analysis 196, ed. by W. ErwinDiewert (Amsterdam: North-Holland), pp. 79147.

      Diewert, W. Erwin, 1992a, “Fisher Ideal Output, Input and Productivity Indexes Revisited,” Journal of Productivity Analysis, Vol. 3 (September), pp. 21148.

      Diewert, W. Erwin, 1992b, “Exact and Superlative Welfare Change Indicators,” Economic Inquiry, Vol. 30 (October), pp. 56582.

      Diewert, W. Erwin, 1993a, “The Early History of Price Index Research,” in Essays in Index Number Theory, Vol. 1, ed. by W. ErwinDiewert and A.O.Nakamura (Amsterdam: North-Holland), pp. 3365.

      Diewert, W. Erwin, 1993b, “Duality Approaches to Microeconomic Theory,” in Essays in Index Number Theory, Vol. 1, ed. by W. ErwinDiewert and A.O.Nakamura (Amsterdam: North-Holland), pp. 10575.

      Diewert, W. Erwin, 1993c, “Symmetric Means and Choice Under Uncertainty,” in Essays in Index Number Theory, Vol. 1, ed. by W. ErwinDiewert and A.O.Nakamura (Amsterdam: North-Holland), pp. 355433.

      Diewert, W. Erwin, 1993d, “Overview of Volume 1,” in Essays in Index Number Theory, Vol. 1, ed. by W. ErwinDiewert and A.O.Nakamura (Amsterdam: North-Holland), pp. 131.

      Diewert, W. Erwin, 1995a, “Axiomatic and Economic Approaches to Elementary Price Indexes,” Discussion Paper No. 95–01 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 1995b, “On the Stochastic Approach to Index Numbers,” Discussion Paper No. 95–31 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 1996a, “Price and Volume Measures in the System of National Accounts,” in The New System of National Accounts, ed. by J.Kendrick (Norwell, Massachusetts: Kluwer Academic), pp. 23785.

      Diewert, W. Erwin, 1996b, “Seasonal Commodities, High Inflation and Index Number Theory,” Discussion Paper 96-06 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 1997, “Commentary on Matthew D. Shapiro and David W. Wilcox: ‘Alternative Strategies for Aggregating Price in the CPI,’Federal Reserve Bank of St. Louis Review, Vol. 79 (May/June), pp. 12737. Available via the Internet:http://research.stlouisfed.org/publications/review/97/05/9705ned.pdf.

      Diewert, W. Erwin, 1998a, “Index Number Issues in the Consumer Price Index,” Journal of Economic Perspectives, Vol. 12 (Winter), pp. 4758.

      Diewert, W. Erwin, 1998b, “High Inflation, Seasonal Commodities and Annual Index Numbers,” Macroeconomic Dynamics, Vol. 2 (December), pp. 45671.

      Diewert, W. Erwin, 1999a, “Index Number Approaches to Seasonal Adjustment,” Macroeconomic Dynamics, Vol. 3 (March), pp. 4868.

      Diewert, W. Erwin, 1999b, “Axiomatic and Economic Approaches to Multilateral Comparisons,” in International and Interarea Comparisons of Income, Output, and Prices, NBER Studies in Income and Wealth Vol. 61, ed. by AlanHeston and RobertE. Lipsey (Chicago: University of Chicago Press), pp. 1387.

      Diewert, W. Erwin, 2000, “Notes on Producing an Annual Superlative Index Using Monthly Price Data,” Discussion Paper No. 00-08 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 2001a, “The Consumer Price Index and Index Number Purpose,” Journal of Economic and Social Measurement, Vol. 27, No. 3–4, pp. 167248.

      Diewert, W. Erwin, 2001b, “Which (Old) Ideas on Productivity Measurement Are Ready to Use?in New Developments in Productivity Analysis, NBER Studies in Income and Wealth Vol. 63, ed. by C.R.Hulten,E.R.Dean and M.J.Harper (Chicago: University of Chicago Press), pp. 85101.

      Diewert, W. Erwin, 2002a, “The Quadratic Approximation Lemma and Decompositions of Superlative Indexes,” Journal of Economic and Social Measurement, Vol. 28 (November), pp. 6388.

      Diewert, W. Erwin, 2002b, “Similarity and Dissimilarity Indexes: An Axiomatic Approach,” Discussion Paper No. 02-10 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 2002c, “Harmonized Indexes of Consumer Prices: Their Conceptual Foundations,” Swiss Journal of Economics and Statistics, Vol. 138 (December), pp. 547637.

      Diewert, W. Erwin, 2002d, “Notes on Hedonic Producer Price Indexes” (unpublished; Vancouver: Department of Economics, University of British Columbia, January 5).

      Diewert, W. Erwin, 2002e, “Hedonic Producer Price Indexes and Quality Adjustment,” Discussion Paper No. 02-14 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 2002f, “Hedonic Regression: A Review of Some Unresolved Issues” (unpublished; Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, 2003, “Hedonic Regressions: A Consumer Theory Approach,” in Scanner Data and Price Indexes, NBER Studies in Income and Wealth, Vol. 64, ed. by RobertC. Feenstra and MatthewD. Shapiro (Chicago: University of Chicago Press), pp. 31748.

      Diewert, W. Erwin, 2005a, “On Measuring Inventory Change in Current and Constant Dollars,” Discussion Paper No. 05–12 (Vancouver: Department of Economics, University of British Columbia). Available via the Internet:www.econ.ubc.ca/discpapers/dp0512.pdf.

      Diewert, W. Erwin, 2005b, “Weighted Country Product Dummy Variable Regressions and Index Number Formulae,” Review of Income and Wealth, Vol. 51 (December), pp. 56170.

      Diewert, W. Erwin, 2006, “Comment on Brian C. Moyer, Marshall B. Reinsdorf, and Robert E. Yuskavage, ‘Aggregation Issues in Integrating and Accelerating the BEA’s Accounts: Improved Methods for Calculating GDP by Industry,’in A New Architecture for the U.S. National Accounts, Studies in Income and Wealth Vol. 66, ed. by D.W.Jorgenson,J.S.Landefeld, and W.D.Nordhaus (Chicago: University of Chicago Press), pp. 287307.

      Diewert, W. Erwin, 2008, “Changes in the Terms of Trade and Canada’s Productivity Performance,” Discussion Paper No. 08-05 (Vancouver: Department of Economics, University of British Columbia).

      Diewert, W. Erwin, WilliamF. Alterman, and LorraineEden,2005, “Transfer Prices and Import and Export Price Indexes: Theory and Practice,” Discussion Paper No. 05–08 (Vancouver: Department of Economics, University of British Columbia). Available via the Internet:www.econ.ubc.ca/discpapers/dp0508.pdf.

      Diewert, W. Erwin, SaeedHeravi, and MickSilver,2009, “Hedonic Imputation Indexes versus Time Dummy Hedonic Indexes,” in Price Index Concepts and Measurement, ed. by W. ErwinDiewert,JohnGreenlees, and CharlesR. Hulten (Chicago: University of Chicago Press). Also available asHedonic Imputation versus Time Dummy Hedonic Indexes,” IMF Working Paper 07/234 (Washington: International Monetary Fund) and NBER Working Paper No. 14018 (Cambridge, Massachusetts: National Bureau of Economic Research).

      Diewert, W. Erwin, and DenisLawrence,2006, “Measuring the Contributions of Productivity and Terms of Trade to Australia’s Economic Welfare,” Report by Meyrick and Associates to the Productivity Commission (Canberra: Australian Government). Available via the Internet:www.oecd.org/dataoecd/7/19/37503743.pdf.

      Diewert, W. Erwin, HideMizobuchi and KojiNomura,2005, “On Measuring Japan’s Productivity, 1955–2003,” Discussion Paper 05-22 (Vancouver: Department of Economics, University of British Columbia). Available via the Internet:www.econ.ubc.ca/discpapers/dp0522.pdf.

      Diewert, W. Erwin, and CatherineJ. Morrison,1986, “Adjusting Output and Productivity Indexes for Changes in the Terms of Trade,” Economic Journal, Vol. 96 (September), pp. 65979.

      Diewert, W. Erwin, and Ann MarieSmith,1994, “Productivity Measurement for a Distribution Firm,” The Journal of Productivity Analysis, Vol. 5 (December), pp. 33547.

      Dikhanov, Yuri, 1997, “Sensitivity of PPP-Based Income Estimates to Choice of Aggregation Procedures” (Washington: International Economics Department, World Bank, January).

      Divisia, François, 1926, L’indice monetaire et la theorie de la monnaie (Paris: Societe Anonyme du Recueil Sirey).

      Dridi, Jemma, and KimberlyZieschang,2004, “Export and Import Price Indices,” IMF Staff Papers, Vol. 51, No. 1, pp. 15894.

      Drobisch, M.W., 1871a, “Ueber die Berechnung der Veränderungen der Waarenpreise und des Geldwerths,” Jahrbücher für Nationalökonomie und Statistik, Vol. 16, pp. 14356.

      Drobisch, M.W., 1871b, “Ueber einige Einwürfe gegen die in diesen Jahrbüchern veröffentlichte neue Methode, die Veränderungen der Waarenpreise und des Geldwerths zu berechten,” Jahrbücher für Nationalökonomie und Statistik, Vol. 16, pp. 41627.

      Dulberger, Ellen R., 1989, “The Application of an Hedonic Model to a Quality-Adjusted Price Index for Computer Processors,” in Technology and Capital Formation, ed. by DaleJorgenson and RalphLandau (Cambridge, Massachusetts: MIT Press).

      Dulberger, Ellen R., 1993, “Sources of Price Decline in Computer Processors: Selected Electronic Components,” in Price Measurements and Their Uses, NBER Studies in Income and Wealth Vol. 57, ed. by MurraryFoss,MarilynE. Manser, and AllanH. Young (Chicago: University of Chicago Press), pp. 10324.

      Dutot, Charles F., 1738, Réflexions politiques sur les finances et le commerce, Vol. 1 (The Haque: Les Fréres Vaillant et Nicolas Prevost).

      Eden, Lorraine, 1998, Taxing Multinationals: Transfer Pricing and Corporate Income Taxation in North America (Toronto: University of Toronto Press).

      Eden, Lorraine, 2001, “Transfer Pricing, Intrafirm Trade and the BLS International Price Program,” BLS Working Paper No. 334 (Washington: Bureau of Labor Statistics, January). Available via the Internet:http://stats.bls.gov/ore/pdf/ec010020.pdf.

      Edgeworth, Francis Ysidro, 1888, “Some New Methods of Measuring Variation in General Prices,” Journal of the Royal Statistical Society, Vol. 51, pp. 34668.

      Edgeworth, Francis Ysidro, 1923, “The Doctrine of Index Numbers According to Mr. Correa Walsh,” Economic Journal, Vol. 11, pp. 34351.

      Edgeworth, Francis Ysidro, 1925, Papers Relating to Political Economy, Vol. 1 (New York: Burt Franklin).

      Ehemann, Christian, 2005, “An Alternative Estimate of Real Inventory Change for National Economic Accounts,” International Journal of Production Economics, Vol. 93–94 (January8), pp. 10110.

      Ehemann, Christian, ArnoldJ. Katz, and BrentR. Moulton,2002, “The Chain-Additivity Issue and the U.S. National Economic Accounts,” Journal of Economic and Social Measurement, Vol. 28, No. 1–2, pp. 3749.

      Eichhorn, Wolfgang, 1978, Functional Equations in Economics, (Reading, Massachusetts: Addison-Wesley).

      Eichhorn, Wolfgang, and JoachimVoeller,1976, Theory of the Price Index, Lecture Notes in Economics and Mathematical Systems, Vol. 140 (New York: Springer-Verlag).

      Epple, Dennis, 1987, “Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products,” Journal of Political Economy, Vol. 95 (February), pp. 5980.

      Ernst and Young, 2001, Transfer Pricing 2001 Global Survey: Making Informed Decisions in Uncertain Times: Practices, Perceptions and Trends in 22 Countries (Ernst and Young International).

      European Foundation for Quality Management, European Foundation for Quality Management Excellence Model (Brussels). Available via the Internet:www.efqm.org/Default.aspx?tabid=24.

      Eurostat (Statistical Office of the European Communities), 2001, Compendium of HICP Reference Documents, Unit B3, “Harmonisation of Price Indices” (Luxembourg, March). Available via the Internet:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=2714,1,2714_61582099&_ dad=portal&_schema=PORTAL#COMP.

      Feenstra, Robert C., 1994, “New Product Varieties and the Measurement of International Prices,” American Economic Review, Vol. 84 (March), pp. 15777.

      Feenstra, Robert C., 1995, “Exact Hedonic Price Indexes,” Review of Economics and Statistics, Vol. 77 (November), pp. 63454.

      Feenstra, Robert C., 2004, Advanced International Trade: Theory and Evidence (Princeton, New Jersey: Princeton University Press).

      Feenstra, Robert C., and W. ErwinDiewert,2000, “Imputation and Price Indexes: Theory and Evidence from the International Price Program,” BLS Working Paper No. 335 (Washington: Bureau of Labor Statistics). Available via the Internet:www.bls.gov/ore/pdf/ec010030.pdf.

      Feenstra, Robert C., and JamesA. Levinsohn,1995, “Estimating Markups and Market Conduct with Multidimensional Product Attributes,” Review of Economic Studies, Vol. 62 (January), pp. 1952.

      Feenstra, Robert C., MarshallB. Reinsdorf, and MatthewJ. Slaughter,2008, “Effects of Terms of Trade Gains and Tariff Changes on the Measurement of U.S. Productivity Growth,” paper presented at the 2009 American Economic Association Conference. Available via the Internet:www.aeaweb.org/assa/2009/.

      Feenstra, Robert C., and MatthewD. Shapiro,2003, “High-Frequency Substitution and the Measurement of Price Indexes,” in Scanner Data and Price Indexes, NBER Studies in Income and Wealth Vol. 64, ed. by RobertC. Feenstra and MatthewD. Shapiro (Chicago: University of Chicago Press), pp. 12346.

      Feenstra, Robert C., and ClintonR. Shiells,1997, “Bias in U.S. Import Prices and Demand,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyBresnahan and RobertJ. Gordon (Chicago: University of Chicago).

      Feinschreiber, Robert, 2004, Transfer Pricing Methods: An Applications Guide (New York: John Wiley & Sons, Inc.).

      Fenwick, David, AdrianBall,MickSilver, and PeterMorgan,2003, “Price Collection and Quality Assurance of Item Sampling in the Retail Price Index: How Can Scanner Data Help?in Scanner Data and Price Indexes, NBER Studies in Income and Wealth Vol. 64, ed. by RobertC. Feenstra and MatthewD. Shapiro (Chicago: University of Chicago Press).

      Ferger, Wirth F., 1931, “The Nature and Use of the Harmonic Mean,” Journal of the American Statistical Association, Vol. 26 (March), pp. 3640.

      Ferger, Wirth F., 1936, “Distinctive Concepts of Price and Purchasing Power Index Numbers,” Journal of the American Statistical Association, Vol. 31 (June), pp. 25872.

      Fisher, Franklin M., and KarlShell,1972, “The Pure Theory of the National Output Deflator,” in The Economic Theory of Price Indexes, ed. by F. M.Fisher and K.Shell (New York: Academic), pp. 49113.

      Fisher, Irving, 1897, “The Role of Capital in Economic Theory,” Economic Journal, Vol. 7 (December), pp. 51137.

      Fisher, Irving, 1911, The Purchasing Power of Money (London: Macmillan).

      Fisher, Irving, 1921, “The Best Form of Index Number,” Journal of the American Statistical Association, Vol. 17, pp. 53337.

      Fisher, Irving, 1922, The Making of Index Numbers: A Study of Their Varieties, Tests, and Reliability (Boston: Houghton Mifflin).

      Fisher, Willard C., 1913, “The Tabular Standard in Massachusetts History,” Quarterly Journal of Economics, Vol. 27 (May), pp. 41751.

      Fixler, Dennis, and KimberlyZieschang,1992, “Incorporating Ancillary Measures of Process and Quality Change into a Superlative Productivity Index,” Journal of Productivity Analysis, Vol. 2 (February), pp. 24567.

      Fleetwood, William, 1707, Chronicon Preciosum (London: Charles Harper); reprinted 1969 (New York: Augustus M. Kelley).

      Flux, A.W., 1921, “The Measurement of Price Change,” Journal of the Royal Statistical Society, Vol. 84, pp. 16799.

      Forsyth, F. G., and R. F.Fowler,1981, “The Theory and Practice of Chain Price Index Numbers,” Journal of the Royal Statistical Society, Vol. 144 (No. 2), pp. 22446.

      Fox, Kevin J., and UlrichKohli,1998, “GDP Growth, Terms of Trade Effects and Total Factor Productivity,” Journal of International Trade and Economic Development, Vol. 7 (March), pp. 87110.

      Frisch, Ragnar, 1930, “Necessary and Sufficient Conditions Regarding the Form of an Index Number Which Shall Meet Certain of Fisher’s Tests,” Journal of the American Statistical Association, Vol. 25, pp. 397406.

      Frisch, Ragnar, 1936, “Annual Survey of General Economic Theory: The Problem of Index Numbers,” Econometrica, Vol. 4 (April), pp. 138.

      Funke, H., and J.Voeller,1988, “A Note on the Characterization of Fisher’s Ideal Index,” in Theory and Applications of Economic Indices, ed. by W.Eichhorn,R.Henn,O.Opitz, and R. W.Shephard(Heidelberg, Germany: Physica-Verlag), pp. 17781.

      Funke, H., G.Hacker, and J.Voeller,1979, “Fisher’s Circular Test Reconsidered,” Schweizerische Zeitschrift für Volkswirtshaft und Statistik, Vol. 115, pp. 67787.

      Gartner Group, 1999, “Instant Benchmarking: Immediate Access to Useless Data,”Research Note, Strategic Planning Assumption (Stamford, March).

      Geary, P. T., and M.Morishima,1973, “Demand and Supply Under Separability,” in Theory of Demand: Real and Monetary, ed. by M.Morishima (Oxford: Clarendon Press), pp. 87147.

      Goldberger, A. A., 1968, “The Interpretation and Estimation of Cobb-Douglas Functions,” Econometrica, Vol. 35, pp. 46472.

      González-Páramo, José Manuel,2006, “Statistical Challenges Raised by Globalisation,”speech delivered by Steven Keuning, Director General Statistics, Frankfurt, European Central BankOctober24.

      Gordon, Robert J., 1990, The Measurement of Durable Goods Prices (Chicago: University of Chicago Press).

      Gorman, W. M., 1968, “Measuring the Quantities of Fixed Factors,” in Value, Capital, and Growth, Papers in Honour of Sir John Hicks, ed. by J. N.Wolfe (Chicago: Aldine) pp. 14172.

      Gorman, W. M., 1980, “A Possible Procedure for Analyzing Quality Differentials in the Egg Market,” Review of Economic Studies, Vol. 47, pp. 84356.

      Greenlees, John S., 1999, “Random Errors and Superlative Indices,” paper presented at the Annual Conference of the Western Economic Association, San Diego, July.

      Greenlees, John S., 2000, “Consumer Price Indexes: Methods for Quality and Variety Change,” Statistical Journal of the United Nations Economic Commission for Europe, Vol. 17 (No. 1), pp. 5974.

      Griliches, Zvi, 1971, “Introduction: Hedonic Prices Revisited,” in Price Indexes and Quality Change: Studies in New Methods of Measurement, ed. by ZviGriliches (Cambridge, Massachusetts: Harvard University Press), pp. 315.

      Griliches, Zvi, 1989, Technology, Education and Productivity: Early Papers with Notes to Subsequent Literature (New York: Blackwell).

      Griliches, Zvi, 1990, “Hedonic Price Indices and the Measurement of Capital and Productivity: Some Historical Reflections,” in Fifty Years of Economic Measurement: The Jubilee of the Conference of Research in Income and Wealth, NBER Studies in Income and Wealth Vol. 54, ed. by ErnstR. Berndt and JackE. Triplett (Chicago: University of Chicago Press), pp. 185206.

      Hardy, Godfrey H., J. E.Littlewood, and G.Pólya,1934, Inequalities (Cambridge: Cambridge University Press).

      Hausman, Jerry A., 1997, “Valuation of New Goods Under Perfect and Imperfect Conditions,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyBresnahan and RobertJ. Gordon (Chicago: University of Chicago Press).

      Hausman, Jerry A., 2003, “Sources of Bias and Solutions to Bias in the Consumer Price Index,” Journal of Economic Perspectives, Vol. 17 (Winter), pp. 2344.

      Hawkes, William J., 1997, “Reconciliation of Consumer Price Index Trends with Corresponding Trends in Average Prices for Quasi-Homogeneous Goods Using Scanning Data,” paper presented at the International Conference on Price Indices, Third Meeting, hosted by Statistics Netherlands, Voorburg, April16–18.

      Heravi, Saeed, AlanHeston, and MickSilver,2003, “Using Scanner Data to Estimate Country Price Parities: A Hedonic Regression Approach,” Review of Income and Wealth, Vol. 49 (March), pp. 121.

      Heravi, Saeed, and MickSilver,2007, “Different Approaches to Estimating Hedonic Indexes,” in Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, NBER Studies in Income and Wealth Vol. 67, ed. by ErnstBerndt and CharlesHulten (Chicago: University of Chicago Press).

      Hicks, J. R., 1940, “The Valuation of the Social Income,” Economica, Vol. 7, pp. 10524.

      Hicks, J. R., 1942, “Consumers’ Surplus and Index Numbers,” Review of Economic Studies, Vol. 9 (Summer), pp. 12637.

      Hicks, J. R., 1945–46, “The Generalized Theory of Consumers’ Surplus,” Review of Economic Studies, Vol. 13, pp. 6874.

      Hicks, J. R., 1946, Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory (Oxford, United Kingdom: Clarendon Press, 2nd ed.).

      Hidiroglou, Michael A., and J. M.Berthelot,1986, “Statistical Editing and Imputation for Periodic Business Surveys,” Survey Methodology, Vol. 12 (No. 1), pp. 7383.

      Hill, Robert J., 1995, Purchasing Power Methods of Making International Comparisons (Ph.D. dissertation;Vancouver: University of British Columbia).

      Hill, Robert J., 1999a, “Comparing Price Levels Across Countries Using Minimum Spanning Trees,” Review of Economics and Statistics, Vol. 81 (February), pp. 13542.

      Hill, Robert J., 1999b, “International Comparisons Using Spanning Trees,” in International and Interarea Comparisons of Income, Output, and Prices, NBER Studies in Income and Wealth Vol. 61, ed. by AlanHeston and RobertE. Lipsey (Chicago: University of Chicago Press), pp. 10920.

      Hill, Robert J., 2001, “Measuring Inflation and Growth Using Spanning Trees,” International Economic Review, Vol. 42 (February), pp. 16785.

      Hill, Robert J., 2006, “Superlative Index Numbers: Not All of Them Are Super,” Journal of Econometrics, Vol. 130 (January), pp. 2543.

      Hill, Peter, 1988, “Recent Developments in Index Number Theory and Practice,” OECD Economic Studies, Vol. 10 (Spring), pp. 12348.

      Hill, Peter, 1993, “Price and Volume Measures,” Chapter XVI inSystem of National Accounts 1993 (New York: United Nations), pp. 379406.

      Hill, Peter, 1998, “The Measurement of Inflation and Changes in the Cost of Living,” Statistical Journal of the United Nations Economic Commission for Europe, Vol. 15, pp. 3751.

      Hill, Peter, 2005, “Price and Quantity Indices for Changes in Inventories in the SNA,”paper prepared for the Canberra II Group on Capital Measurement, June.

      Hillinger, Claude, 2002, “A General Theory of Price and Quantity Aggregation and Welfare Measurement,” SEMECON (unpublished; Munich: University of Munich). Also available as CESifo Working Paper No. 818 (Munich: Munich Society for the Promotion of Economic Research).

      Hirshleifer, Jack, 1956, “On the Economics of Transfer Pricing,” Journal of Business, Vol. 29 (July), pp. 17283.

      Hoffmann, Johannes, 1998, “Problems of Inflation Measurement in Germany,” Economic Research Group of the Deutsche Bundesbank, Discussion Paper No. 1/98 (Frankfurt: Deutsche Bundesbank).

      Hoffmann, Johannes, and Jeong-RyeolKurz-Kim,2006, “Consumer Price Adjustment Under the Microscope: Germany in a Period of Low Inflation,” Discussion Paper Series 1: Economic Studies, No. 16/2006 (Frankfurt: Deutsche Bundesbank).

      Holdway, Michael, 1999, “An Alternative Methodology: Valuing Quality Changes for Microprocessors in the PPI” (unpublished; Washington: Bureau of Labor Statistics).

      Holdway, Michael, 2001, “Quality-Adjusting Computer Prices in the Producer Price Index: An Overview” (Washington: Bureau of Labor Statistics). Available via the Internet:www.bls.gov/ppi/ppicomqa.htm.

      Hotelling, Harold, 1932, “Edgeworth’s Taxation Paradox and the Nature of Demand and Supply Functions,” Journal of Political Economy, Vol. 40, No. 5, pp. 577616.

      Houthakker, H.S., 1952, “Compensated Changes in Quantities and Qualities Consumed,” Review of Economic Studies, Vol. 19 (January), pp. 15564.

      International Chamber of Commerce, 2000, Incoterms 2000: ICC Official Rules for the Interpretation of Trade Terms, ICC Publication Number 560 (Paris).

      International Labor Organization (ILO), International Monetary Fund, Organization for Economic Cooperation and Development, Statistical Office of the European Communities, United Nations Economic Commission for Europe, and World Bank, 2004a, Consumer Price Index Manual: Theory and Practice (Geneva: ILO).

      International Labor Organization (ILO), International Monetary Fund, Organization for Economic Cooperation and Development, United Nations Economic Commission for Europe, and the World Bank, 2004b, Producer Price Index Manual: Theory and Practice (Washington: International Monetary Fund).

      International Standards Organization, 1994, ISO 9000-1, (Geneva). Available via the Internet:www.iso.org.

      International Standards Organization, 2000, ISO 9001(Geneva). Available via the Internet:www.iso.org.

      Ioannidis, Christos, and MickSilver,1999, “Estimating Exact Hedonic Indexes: An Application to U.K. Television Sets,” Journal of Economics/Zeitschrift fur Nationalökonomie (Austria), Vol. 69 (February), pp. 7194.

      Jensen, J. L. W. V., 1906, “Sur les fonctions convexes et les inégalités entre les valeurs moyennes,” Acta Mathematica, Vol. 8, pp. 9496.

      Jevons, William Stanley, 1863, A Serious Fall in the Value of Gold Ascertained and Its Social Effects Set Forth, reprinted inInvestigations in Currency and Finance (London: Macmillan, 1884), pp. 13118.

      Jevons, William Stanley, 1865, “On the Variation of Prices and the Value of the Currency Since 1782,” Journal of the Statistical Society of London, Vol. 28 (June), pp. 294320. Reprinted inInvestigations in Currency and Finance (London: Macmillan, 1884) pp. 11950.

      Jorgenson, Dale W., and ZviGriliches,1967, “The Explanation of Productivity Change,” Review of Economic Studies, Vol. 34, pp. 24983.

      Jorgenson, Dale W., and ZviGriliches,1972, “Issues in Growth Accounting: A Reply to Edward F. Denison,” Survey of Current Business, Vol. 52 (May, Part II), pp. 6594.

      Kennedy, Peter, 2003, A Guide to Econometrics (Cambridge, Massachusetts: MIT Press, 5th ed.).

      Keynes, John Maynard,1930, A Treatise on Money, Vol. 1, The Pure Theory of Money (London: Macmillan;reprinted 1950).

      Knibbs, G. H., 1924, “The Nature of an Unequivocal Price Index and Quantity Index,” Journal of the American Statistical Association, Vol. 19, pp. 4260and pp. 196205.

      Kohli, Ulrich, 1978, “A Gross National Product Function and the Derived Demand for Imports and Supply of Exports,” Canadian Journal of Economics, Vol. 11 (May), pp. 16782.

      Kohli, Ulrich, 1982, “Relative Price Effects and the Demand for Imports,” Canadian Journal of Economics, Vol. 15 (May), pp. 20319.

      Kohli, Ulrich, 1983, “Technology and the Demand for Imports,” Southern Economic Journal, Vol. 50 (July), pp. 13750.

      Kohli, Ulrich, 1990, “Growth Accounting in the Open Economy: Parametric and Nonparametric Estimates,” Journal of Economic and Social Measurement, Vol. 16, pp. 12536.

      Kohli, Ulrich, 1991, Technology, Duality and Foreign Trade: The GNP Function Approach to Modeling Imports and Exports (Ann Arbor, Michigan: University of Michigan Press).

      Kohli, Ulrich, 2003, “Growth Accounting in the Open Economy: International Comparisons,” International Review of Economics and Finance, Vol. 12, No. 4, pp. 41735.

      Kohli, Ulrich, 2004a, “An Implicit Törnqvist Index of Real GDP,” Journal of Productivity Analysis, Vol. 21 (May), pp. 33753.

      Kohli, Ulrich, 2004b, “Real GDP, Real Domestic Income, and Terms-of-Trade Changes,” Journal of International Economics, Vol. 62 (January), pp. 83106.

      Kohli, Ulrich, 2006, “Real GDP, Real GDI and Trading Gains: Canada, 1982–2005,” International Productivity Monitor, No. 13 (Fall), pp. 4656.

      Kokoski, Mary F., BrentR. Moulton, and KimberlyD. Zieschang,1999, “Interarea Price Comparisons for Heterogeneous Goods and Several Levels of Commodity Aggregation,” in International and Interarea Comparisons of Prices, Output, and Productivity, NBER Studies in Income and Wealth Vol. 61, ed. by AlanHeston and RobertE. Lipsey (Chicago: University of Chicago Press), pp. 12366.

      Kokoski, Mary F., K.Waehrer, and P.Rozaklis,2001, “Using Hedonic Methods for Quality Adjustment in the CPI: The Consumer Audio Products Component,” BLS Working Paper No. 344 (Washington: Bureau of Labor Statistics).

      Konüs, A.A., 1924, “The Problem of the True Cost of Living Index,” English translation published inEconometrica, Vol. 7 (1939), pp. 1029.

      Konüs, A.A., and S.S.Byushgens,1926, “K probleme pokupatelnoi cili deneg,” Voprosi Konyunkturi, Vol. 2, pp. 15172.

      Koskimäki, Timo, and Yrjo.O. Vartia,2001, “Beyond Matched Pairs and Griliches-Type Hedonic Methods for Controlling Quality Changes in CPI Sub-Indices: Mathematical Considerations and Empirical Examples on the Use of Linear and Non-Linear Hedonic Models with Time-Dependent Quality Parameters,” paper presented at the Sixth Meeting of the International Working Group on Price Indices, Canberra, Australia, March. Available via the Internet:www4.statcan.ca/secure/english/ottawagroup/meet.htm.

      Kravis, Irving B., and RobertE. Lipsey,1971, Price Competitiveness in World Trade, Studies in International Economic Relations Vol. 6 (New York: National Bureau of Economic Research).

      Kravis, Irving B., and RobertE. Lipsey,1985, “Prices and Terms of Trade for Developed-Country Exports of Manufactured Goods,” NBER Working Paper No. 774 (Cambridge, Massachusetts: National Bureau of Economic Research).

      Lach, Saul, 2002, “Existence and Persistence of Price Dispersion: An Emmpirical Analysis,” Review of Economics and Statistics, Vol. 84 (August), pp. 43344.

      Lancaster, Kelvin J., 1966, “A New Approach to Consumer Theory,” Journal of Political Economy, Vol. 74 (April), pp. 13257.

      Lancaster, Kelvin J., 1971, Consumer Demand: A New Approach (New York: Columbia University Press).

      Laspeyres, Etienne, 1871, “Die Berechnung einer mittleren Waarenpreissteigerung,” Jahrbücher für Nationalökonomie und Statistik, Vol. 16, pp. 296314.

      Lau, Laurence J., 1976, “A Characterization of the Normalized Restricted Profit Function,” Journal of Economic Theory, Vol. 12 (February), pp. 13161.

      Lehr, J., 1885, Beitrage zur Statistik der Preise (Frankfurt: J.D. Sauerlander).

      Levy, F., A. Beamish,R.J.Murnane, and D.Aurtor,1999, “Computerization and Skills: Example from a Car Dealership,”Brookings Program on Output and Productivity Measurement in the Services Sector, Workshop on Measuring the Output of Business Services, Brookings Institution, Washington, May14.

      Liegey, Paul, 1993, “Adjusting Apparel Indexes in the CPI for Quality Differences,” in Price Measurements and Their Uses, NBER Studies in Income and Wealth Vol. 57, ed. by M.Foss,M.Manser, and A.Young (Chicago,University of Chicago Press), pp. 20926.

      Lloyd, P.J., 1975, “Substitution Effects and Biases in Nontrue Price Indices,” American Economic Review, Vol. 65 (June), pp. 30113.

      Lowe, Joseph, 1823, The Present State of England in Regard to Agriculture, Trade and Finance (London: Longman, Hurst, Rees, Orme, and Brown, 2nd ed.).

      Maddala, G.S., 1988, Introduction to Econometrics (New York: Macmillan).

      Malmquist, Sten, 1953, “Index Numbers and Indifference Surfaces,” Trabajos de Estadistica, Vol. 4, pp. 20942.

      Marshall, Alfred, 1887, “Remedies for Fluctuations of General Prices,” Contemporary Review, Vol. 51, pp. 35575.

      McClelland, Robert, and MarshallReinsdorf,1999, “Small Sample Bias in Geometric Mean and Seasoned CPI Component Indexes,” BLS Working Paper No. 324 (Washington: Bureau of Labor Statistics).

      McFadden, Daniel, 1978, “Cost, Revenue and Profit Functions,” in Production Economics: A Dual Approach to Theory and Applications: The Theory of Production, Vol. 1, ed. by M.Fuss and D.McFadden (Amsterdam: North-Holland), pp. 3109.

      Mendelsohn, Robert, 1984, “Estimating the Structural Equations of Implicit Markets and Household Production Functions,” Review of Economics and Statistics, Vol. 66 (November), pp. 67377.

      Mendershausen, Horst, 1937, “Annual Survey of Statistical Technique: Methods of Computing and Eliminating Changing Seasonal Fluctuations,” Econometrica, Vol. 5 (July), pp. 23462.

      Merkel, F.K., 2000, “Addressing New Item Bias in the Producer Price Indexes: A PPI Quality Improvement Initiative” (unpublished;Washington: Bureau of Labor Statistics).

      Mitchell, W.C., 1927, Business Cycles: The Problem and Its Setting (New York: National Bureau of Economic Research).

      Morris, John, and TegwenGreen,2007, “Measuring the Quality of the Producer Price Index,” Economic and Labour Market Review, Vol. 1, No. 10 (October).

      Morrison, Catherine J., and W. ErwinDiewert, 1990, “Productivity Growth and Changes in the Terms of Trade in Japan and the United States,” in Productivity Growth in Japan and the United States, NBER Studies in Income and Wealth, Vol. 53, ed. by CharlesHulten (Chicago: University of Chicago Press), pp. 20127.

      Moser, Claus A., and G.Kalton,1971, Survey Methods in Social Investigation (London: Heinemann).

      Moulton, Brent R., 1996, “Constant Elasticity Cost-of-Living Index in Share Relative Form” (unpublished;Washington: Bureau of Labor Statistics, December).

      Moulton, Brent R., 2001, “The Expanding Role of Hedonic Methods in the Official Statistics of the United States,”Proceedings of a Symposium on Hedonic Methods, Deutsche Bundesbank and German Federal Statistical Office (Statistisches Bundesamt), Wiesbaden, June.

      Moulton, Brent R., and DavidSullivan,1999, “A Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts,” Survey of Current Business, Vol. 79 (October), pp. 617.

      Moyer, Brian, MarshallReinsdorf, and RobertYuskavage,2006, “Aggregation Issues in Integrating and Accelerating BEA’s Accounts: Improved Methods for Calculating GDP by Industry,” in A New Architecture for the U.S. National Accounts, Studies in Income and Wealth Vol. 66, ed. by D.W.Jorgenson,J.S.Landefeld, and W.D.Nordhaus (Chicago: University of Chicago Press), pp. 26387.

      Mudgett, Bruce D., 1951, Index Numbers (New York: John Wiley & Sons).

      Mudgett, Bruce D., 1955, “The Measurement of Seasonal Movements in Price and Quantity Indexes,” Journal of the American Statistical Association, Vol. 50, pp. 9398.

      Muellbauer, John, 1974, “Household Production Theory, Quality, and the ‘Hedonic Technique,’American Economic Review, Vol. 64 (December), pp. 97794.

      Murray, Johnathan, and NicholasSarantis,1999, “Price-Quality Relations and Hedonic Price Indexes for Cars in the United Kingdom,” International Journal of the Economics of Business, Vol. 6 (February), pp. 527.

      Muth, Richard F., 1966, “Household Production and Consumer Demand Functions,” Econometrica, Vol. 34 (July), pp. 699708.

      Nakamura, Emi, 2008, “Pass-Through in Retail and Wholesale,”paper presented at the 2008 World Congress on National Accounts and Economic Performance Measures for Nations, Arlington, Virginia, May1317.

      Nevo, Aviv, 2001, “Measuring Market Power in the Ready-To-Eat Cereal Industry,” Econometrica, Vol. 69 (March), pp. 30742.

      Obst, Carl, 2000, “A Review of Bias in the CPI,” Statistical Journal of the United Nations Economic Commission for Europe, Vol. 17, No. 1, pp. 3758.

      Oi, Walter Y., 1997, “The Welfare Implications of Invention,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyF. Bresnahan and RobertJ. Gordon (Chicago: University of Chicago Press), pp. 10941.

      Okamoto, Masato, 2001, “Midpoint-Year Basket Index as a Practical Approximation to Superlative Index,” paper presented at the International Conference on Price Indices, Sixth Meeting, hosted by the Australian Bureau of Statistics, Canberra, April 2–6.

      Opperdoes, Eddy, 2001, “Some Empirical Experiments with CES Functions” (unpublished;Voorburg: Statistics Netherland).

      Organization for Economic Cooperation and Development (OECD), 1996, Inflation Accounting: A Manual on National Accounting Under Conditions of High Inflation (Paris).

      Organization for Economic Cooperation and Development (OECD), 2001a, OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity Growth (Paris).

      Organization for Economic Cooperation and Development (OECD), 2001b, Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (Paris).

      Osgood, William F., 1925, Advanced Calculus (New York: Macmillan).

      Paasche, H., 1874, “Über die Preisentwicklung der letzten Jahre nach den Hamburger Borsennotirungen,” Jahrbücher für Nationalökonomie und Statistik, Vol. 12, pp. 16878.

      Pakes, Ariel, 2003, “A Reconsideration of Hedonic Price Indexes with an Application to PCs,” American Economic Review, Vol. 93, No. 5, December, pp. 1578–1596.

      Palgrave, R.H. Inglis, 1886, “Currency and Standard of Value in England, France and India and the Rates of Exchange Between These Countries,”Memorandum for the Royal Commission on the Depression of Trade and Industry, inBritish Parliamentary Papers: Session 1886: Third Report and Final Report of the Royal Commission on the Depression in Trade and Industry, with Minutes of Evidence and Appendices, Appendix B (Shannon, Ireland: Irish University Press, 1969).

      Párniczky, G., 1974, “Some Problems of Price Measurement in External Trade Statistics,” Acta Oeconomica, Vol. 12, No. 2, pp. 22940.

      Phillips, Almarin, 1961, “Industry Net Output Estimates in the United States,” in Output, Input and Productivity Measurement, NBER Studies in Income and Wealth Vol. 25, ed. by J.W.Kendrick (Princeton, New Jersey: Princeton University Press), pp. 31527.

      Pierson, N.G., 1895, “Index Numbers and Appreciation of Gold,” Economic Journal, Vol. 5 (September), pp. 32935.

      Pierson, N.G., 1896, “Further Considerations on Index Numbers,” Economic Journal, Vol. 6, pp. 12731.

      Pigou, A.C., 1924, The Economics of Welfare (London: Macmillan, 2nd ed.).

      Pollak, Robert A., 1975, “Subindexes of the Cost of Living,” International Economic Review, Vol. 16, pp. 13560.

      Pollak, Robert A., 1983, “The Theory of the Cost-of-Living Index,” in Price Level Measurement, ed. by W. ErwinDiewert and C.Montmarquette (Ottawa: Statistics Canada), pp. 87161. Reprinted inRobertA. Pollak,1989, The Theory of the Cost-of-Living Index (Oxford, United Kingdom: Oxford University Press), pp. 352.

      Rasmussen, David W., and ThomasW. Zuehlke,1990, “On the Choice of Functional Form for Hedonic Price Functions,” Applied Economics Vol. 22, No. 4, pp. 43138.

      Reinsdorf, Marshall B., 1994, “Price Dispersion, Seller Substitution and the U.S. CPI,” BLS Working Paper No. 252 (Washington: Bureau of Labor Statistics).

      Reinsdorf, Marshall B., 1996, “Constructing Basic Component Indexes for the U.S. CPI from Scanner Data: A Test Using Data on Coffee,” BLS Working Paper No. 277 (Washington: Bureau of Labor Statistics).

      Reinsdorf, Marshall B., 1998, “Divisia Indices and the Representative Consumer Problem,” paper presented at the International Conference on Price Indices, Fourth Meeting, hosted by the Bureau of Labor Statistics, Washington,April 22–24.

      Reinsdorf, Marshall B., W. ErwinDiewert, and ChristianEhemann,2002, “Additive Decompositions for the Fisher, Törnqvist and Geometric Mean Indexes,” Journal of Economic and Social Measurement, Vol. 28, pp. 5161.

      Reinsdorf, Marshall B., and BrentR. Moulton,1997, “The Construction of Basic Components of Cost-of-Living Indexes,” in The Economics of New Goods, NBER Studies in Income and Wealth Vol. 58, ed. by TimothyF. Bresnahan and RobertJ. Gordon (Chicago: University of Chicago Press), pp. 397423.

      Richardson, Ian, 2000, “Producer Price Indices: Principles and Procedures,”U.K. Government Statistical Office, Methodological Series 20 (London: Office of National Statistics).

      Roger, Scott, 2000, “Relative Prices, Inflation, and Core Inflation,” IMF Working Paper 00/58 (Washington: International Monetary Fund).

      Rosen, Sherwin, 1974, “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition,” Journal of Political Economy, Vol. 82 (January-February), pp. 3449.

      Rothwell, D.P., 1958, “Use of Varying Seasonal Weights in Price Index Construction,” Journal of the American Statistical Association, Vol. 53, pp. 6677.

      Rowe, J.W.F., 1927, “An Index of the Physical Volume of Production,” Economic Journal, Vol. 37 (June), pp. 17387.

      Ruffles, David, and TriciaWilliams,2004, “Statistics on Trade in Goods,”U.K. Government Statistical Office Methodological Series No. 34 (London: Office of National Statistics).

      Ruffles, David, and KevinWilliamson,1997, “Deflation of Trade in Goods Statistics: Derivation of Price and Volume Measures from Current Price Values,” Economic Trends, Vol. 521 (April). Reprinted in Office for National Statistics (ONS), 1998, Economic Trends, Digest of Articles No. 1 (London).

      Rymes, T.K., 1968, “Professor Read and the Measurement of Total Factor Productivity,” Canadian Journal of Economics, Vol. 1, pp. 35967.

      Rymes, T.K., 1983, “More on the Measurement of Total Factor Productivity,” Review of Income and Wealth, Vol. 29 (September), pp. 297316.

      Saïdi, Abdelnasser, and Susana RubinBleuer,2005, “Detection of Outliers in the Canadian Consumer Price Index,” supporting paper submitted by Statistics Canada, Work Session on Statistical Data Editing, WP.5, 16–18 May (Ottawa: United Nations Statistical Commission and Economic Commission for Europe). Available via the Internet:www.unece.org/stats/documents/2005/05/sde/wp.5.e.pdf.

      Samuelson, Paul A., 1947, Foundations of Economic Analysis (Cambridge, Massachusetts: Harvard University Press).

      Samuelson, Paul A., 1950, “Evaluation of Real National Income,” Oxford Economic Papers, Vol. 2 (January), pp. 1–29.

      Samuelson, Paul A., 1950, “Prices of Factors and Goods in General Equilibrium,” Review of Economic Studies, Vol. 21, pp. 120.

      Samuelson, Paul A., and S.Swamy,1974, “Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis,” American Economic Review, Vol. 64 (September), pp. 56693.

      Särndal, Carl-Erik, BengtSwensson, and JanWretman,1992, Model Assisted Survey Sampling (New York: Springer-Verlag).

      Schlömilch, O., 1858, “Über Mïttelgrössen verschiedener Ordnungen,” Zeitschrift für Mathematik und Physik, Vol. 3, pp. 30810.

      Schreyer, Paul, 2007, “Measuring Capital: Revised Manual,” paper presented at the Meeting of the Working Party on National Accounts, Organization for Economic Cooperation and Development, Paris, October 3–5.

      Schultz, Bodhan, 1999, “Alternative Estimates of Price Change for Private Transportation: Empirical Study with Theoretical Discussion,” paper presented at the International Conference on Price Indices, Fifth Meeting, hosted by Statistics Iceland, ReykjavikAugust2527.

      Schultze, Charles B., and ChristopherMackie,eds., 2002, At WhatPrice? Conceptualizing and Measuring Cost-of-Living and Price Indexes (Washington: National Academy Press).

      Scrope, George P., 1833, Principles of Political Economy: Deduced from the Natural Laws of Social Welfare, and Applied to the Present State of Britain. (London: Longman, Rees, Orme, Brown, Green, and Longman).

      Selvanathan, E.A., and D.S.Prasada Rao,1994, Index Numbers: A Stochastic Approach (Ann Arbor, Michigan: University of Michigan Press).

      Shapiro, Matthew D., and DavidW. Wilcox,1997, “Alternative Strategies for Aggregating Prices in the Consumer Price Index,” Federal Reserve Bank of St. Louis Review, Vol. 79 (May–June), pp. 1132.

      Shephard, Ronald W., 1953, Cost and Production Functions (Princeton, New Jersey: Princeton University Press).

      Shephard, Ronald W., 1970, Theory of Cost and Production Functions (Princeton, New Jersey: Princeton University Press).

      Sheshinski, Eytan, and YoramWeiss,1977, “Inflation and Costs of Price Adjustment,” Review of Economic Studies, Vol. 44 (June), pp. 287303.

      Sidgwick, Henry, 1883, The Principles of Political Economy (London: Macmillan).

      Silver, Mick S., 1995, “Elementary Aggregates, Micro-Indices and Scanner Data: Some Issues in the Compilation of Consumer Price Indices,” Review of Income and Wealth, Vol. 41 (December), pp. 42738.

      Silver, Mick S., 1999, “An Evaluation of the Use of Hedonic Regressions for Basic Components of Consumer Price Indices,” Review of Income and Wealth, Vol. 45 (March), pp. 4156.

      Silver, Mick S., 2002, “The Use of Weights in Hedonic Regressions: The Measurement of Quality Adjusted Price Changes” (unpublished;Cardiff, Wales, United Kingdom: Cardiff University Business School).

      Silver, Mick S., 2007, “Do Unit Value Export, Import, and Terms of Trade Indices Represent or Misrepresent Price Indices?IMF Working Paper 07/127 (Washington: International Monetary Fund). Also forthcoming in IMF Staff Papers. Available online at:www.palgrave-journals.com/imfsp/journal/vaop/ncurrent/index.html#23092008.

      Silver, Mick S., 2008, “An Index Number Formula Problem: the Aggregation of Broadly Comparable Items,” paper presented at the 2008 World Congress on National Accounts and Economic Performance Measures for Nations, Washington, May1217. Available asIMF Working Paper, 2009: www.imf.org/external/pubind.htm.

      Silver, Mick S., and SaeedHeravi,2001a, “Scanner Data and the Measurement of Inflation,” Economic Journal, Vol. 111 (June), pp. F384F405.

      Silver, Mick S., and SaeedHeravi,2001b, “Why the CPI Matched Models Method May Fail Us: Results from a Hedonic and Matched Experiment Using Scanner Data,”paper presented at the Joint Meeting of the Centre for Economic Policy Research and the European Central Bank: Issues in the Measurement of Price Indices, Frankfurt, November 16–17.

      Silver, Mick S., and SaeedHeravi,2002, “A Failure in the Measurement of Inflation: Results from a Hedonic and Matched Experiment Using Scanner DataECB Working Paper No. 144 (Frankfurt: European Central Bank).

      Silver, Mick S., and SaeedHeravi,2003The Measurement of Quality-Adjusted Price Changes,” in Scanner Data and Price Indexes, NBER Studies in Income and Wealth Vol. 64, ed. by RobertC. Feenstra and MatthewD. Shapiro (Chicago: University of Chicago Press), pp. 277316.

      Silver, Mick S., and SaeedHeravi,2004, “Hedonic Price Indexes and the Matched Models Approach,” Manchester School, Vol. 72 (January), pp. 2449.

      Silver, Mick S., and SaeedHeravi,2005, “A Failure in the Measurement of Inflation: Results from a Hedonic and Matched Experiment Using Scanner Data,” Journal of Business and Economic Statistics, Vol. 23, No. 3 (July), pp. 26981.

      Silver, Mick S., and SaeedHeravi,2007a, “Why Elementary Price Index Number Formulas Differ: Price Dispersion and Product Heterogeneity,” Journal of Econometrics, Vol. 140 (October), pp. 87483.

      Silver, Mick S., and SaeedHeravi,2007b, “Hedonic Indexes: A Study of Alternative Methods,” in Hard-to-Measure Goods and Services: Essays in Honour of Zvi Griliches, ed. by ErnstR. Berndt and CharlesR. Hulten (Chicago: University of Chicago Press), pp. 235268.

      Silver, Mick S., and ChristosIoannidis,2001, “Intercountry Differences in the Relationship Between Relative Price Variability and Average Prices,” Journal of Political Economy, Vol. 109 (April), pp. 35574.

      Silver, Mick, and KhashayarMahdavy,1989, “The Measurement of a Nation’s Terms of Trade Effect and Real National Disposable Income Within a National Accounting Framework,” Journal of the Royal Statistical Society, Series A, Vol. 152, Part 1 (March), pp. 87107. Reprinted in Vicente Galbis, The IMF’s Statistical Systems in Context of the Revision of the United Nations’ A System of National Accounts (Washington: International Monetary Fund, 1991).

      Silver, Mick, and BruceWebb,2002, “The Measurement of Inflation: Aggregation at the Basic Level,” Journal of Economic and Social Measurement, Vol. 28, No. 1–2, pp. 2135.

      Singh, Ravindra, and Naurang SinghMangat,1996, Elements of Survey Sampling, Kluwer Texts in the Mathematical Sciences Vol. 15 (Boston: Kluwer Academic).

      Sono, M., 1945, “The Effect of Price Changes on the Demand and Supply of Separable Goods,” translation published inInternational Economic Review, Vol. 2 (1961), pp. 23975.

      Sorensen, Alan T., 2000, “Equilibrium Price Dispersion in Retail Markets for Prescription Drugs,” Journal of Political Economy, Vol. 108 (August), pp. 83350.

      Statistical Office of the European Communities (Eurostat), 2008, Eurostat Manual of Supply, Use and Input-Output Tables (Luxembourg: Office for Official Publications of the European Communities).

      StatisticsSweden,2001, The Swedish Consumer Price Index: A Handbook of Methods (Stockholm).

      Stone, Richard, 1956, Quantity and Price Indexes in National Accounts (Paris: OECD).

      Szulc (Schultz), Bohdan J., 1983, “Linking Price Index Numbers,” in Price Level Measurement, ed. by W. ErwinDiewert and C.Montmarquette (Ottawa: Statistics Canada), pp. 53766.

      Szulc (Schultz), Bohdan J., 1987, “Price Indices Below the Basic Aggregation Level,” Bulletin of Labour Statistics, Vol. 2, pp. 916.

      Tauchen, Helen, and AnnD. Witte,2001, “Estimating Hedonic Models: Implications of the Theory,” NBER Technical Working Paper No. 271 (Cambridge, Massachusetts: National Bureau of Economic Research). Available via the Internet:www.nber.org/papers/t0271.

      Teekens, R., and J.Koerts,1972, “Some Statistical Implications of the Log Transformation of Multiplicative Models,” Econometrica, Vol. 40 (September), pp. 793819.

      Theil, Henri,