DOCSLIB.ORG

The CPI and the PCE Deflator: an Econometric Analysis of Two Price Measures

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The CPI and the PCE Deflator: an Econometric Analysis of Two Price Measures This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Annals of Economic and Social Measurement, Volume 2, number 3 Volume Author/Editor: NBER Volume Publisher: NBER Volume URL: http://www.nber.org/books/aesm73-3 Publication Date: July 1973 Chapter Title: The CPI and the PCE Deflator: An Econometric Analysis of Two Price Measures Chapter Author: Jack E. Triplett, Stephen Merchant Chapter URL: http://www.nber.org/chapters/c9904 Chapter pages in book: (p. 263 - 286) Annuls of Econom iv and Social P1r'asurmenf, 2/3. 1973 THE CPI AND THE PCE DEFLATOR: AN ECONOMETRIC ANALYSIS OF TWO PRICE MEASURES BY JACK E. TRIPI.ETT AND STEPHEN M.MERCHANT* This paper shows that differences in the movement of the CPI and the PCE deflator can largely he at- tributed to different price changes recorded hr comparable individual components of the two indexes. rather than to dfJerences (such as the weighting patterns) in methods for constructing the aggregate indexes out of the micro data. The results provide a basis for choosing between alternatire price measures for consumption. Two measures of aggregate price change for consumption goods and services are in general use--the Consumer Price Index (CPI), published by the Bureau of Labor Statistics, and the Implicit Price Deflator for Personal Consumption Ex- penditures (PCE), from the Bureau of Economic Analysis. The two indexes frequently present contradictory evidence of the magnitudeand sometimes even the direction--of price movement (see Figure 1), so that index users, faced with a choice between the CPI and the PCE, frequently ask: What is the sourceof the divergence between the two series? And, which is preferable for a particularuse? Figure IQuarterly Percentage Changes (Seasonally Adjusted), Consumer Price Index and Implicit PCE Deflator, 1965-1971. PERCENT FE CENT OH N GE Oh q N GE - 3.0 cPI 2.5 - 2.1) 1 .5 .5 L 1.0 2.5 " 0.5 jO.3 0.0 1965 1956 1957 1968 1969 1970 1971 Sources: PCE: computed from data published in Survey of CurrentBustness, July 1968. p. 49, July 1969, p. 47, July 1970, p. 47. July 1971, p. 43. July,1972. p.47 (correction of errors in printed data provided by BEA). CPI : computed from BLS data. * Office of Prices and Living Conditions, U.S. Bureau of Labor Statistics.Conclusions are those of the authors, exclusively. The paper does not represent anofficial position of the Bureau of Labor Statistics nor is it necessarily endorsed by the staff of the Officeof Prices and Living Conditions, either individually or collectively. We wish to thank the following forassistance: Robert F. Gillingham. Marian L. Hall, and Brian D. Hedgesf the BLS, the reviewer for this journal, and John C. Musgrave, Bureau of Economic Analysis. 263 Determining answers to either of these questions is difficult.Although it is 'Nell known that the CIJand PCE deflator differ in patterns, and computationa, coverage, concept, weighting procedures, available publishedinformationis insufficient to determineexact details of differences between less information about them.' There is even the quantitative impact ofdifferences in construction methods on index behavior. The present article compares behavior ofthe two indexes, using methodswhich permit statistical them; results testing of relationships between suggest that divergence between thePCE and the CPI stems from sources other than those previouslyconsidered. PREVIOUS APPROACHESTO THE PROBLEM Descriptions of the PCE implicitprice deflator indicate that data exist, the CPI series wherever CPI are used as deflatingindexes.2Thus, in a simple example where only one valueseries and one CPI deflating of a PCE index appear in thecomputation component, the PCE shouldpresent an exact imageof ponents used as inputs. Thus, it the CPI com- is tempting (thoughas we show, incorrect) to conc'ude that if theaggregate PCE and CP1 do not move together, thesource of the discrepancymust lie in the different weighting schemes employed toaggregate the individualcomponents into an overall index, or in coverage differences inthe two indexes (componentswhich make up about PCE have no one-quarter of the weightofthe counterpart in the CPI), or indifferences in concept measurement of price change in employed in the certain components (housingand used cars being the best knownexamples). We believe, from examining fragmentaryremarks sprinkled through theliterature, that most index or trying to decide whichof users comparing the two indexes, them to employ ina study, have regarded weights, concept and coverage to be therelevantand, indeed, only.-consjderj5 However, previous investigations which haveexplored weighting and differences have failedto resolve discrepancies concept approach involves reweighting between the two indexes.One the PCE accordingto constant weightsof base period, thusConverting it into some a fixed-weight type of index(as is the CPI). Substantial divergences betweenthe reweighted PCE Unexplained3 and the CN haveremained Another approach thathas been tried is to delete, from both indexes,a few components known (or thought)to differ in concept, and then to examinethe aggregate behavior of theremainder. Removing Housing example, often seems from both indexes,for to reduce the differencesin the aggregates.aa problem with thisapproach is that there is The major no systematic way toassure oneself Standard documentation ofthe CPI is U.S. Department 'The Consumer Price Index: of Labor, Bureau of LaborStatistics History and Techniques,"Bulletin No 1517, Government Printing Office (1964).To our knowledge, the Washington, D.C.: U.S. det)ator is Gregory Kipnis, most thorough description ofthe PCE "Implicit Price Index (lPI),"Appendix C, in U.S Congress, Committee Subcommitteeon Economic Statistics, "Inflation Joint Economic 2nd Session (July, 1966). and the Price Indexes."89th Congress. 2 As Indicated above, ourmajor source of information Kipnis op cii., pp. 104-105. on the PCE was Kipnis,op. cit. Allan H. Young andClaudia Harkins, Price Change for GNp,"Surrey of Current Business, "Alternative Measures of Sut'ey of Current Business, March 1969, vol 49, No.3, pp. 47-52, also, August 1970,pp. 12-13; Survey of Current Business, Theappcn August 1971, pp. 23-26. comains an analysis of the behaviorof the Housing components of both indexes 264 that the few components deleted are the only ones which behave differently. Moreover, simple inspection is the only technique readily employable with either approach, and when there are large quantities of data, it is difficult to learn much from simple inspection. A NEW APPROACH Ihe present investigation commenced by posing a different question, namely: Is it really true that those components of the implicit PCE deflator which in- corporate CPI data as deflating indexesbehaveas if they were based on the CPI? Unless they do, exploring the impact of different weighting patterns, etc., does not strike us as particularly interesting (and interesting or not, the exploration cannot be carried out very effectively without knowledge of any behavioral differences that exist among the various components of the two indexes). There are two reasons for exploring the matter: (1) the inability to account for CPI-PCE differences with approaches used previously suggests searching for an explanation along different lines, and (2) computing the national accounts is a far more complex process than what is usually depicted in simple textbook examples, and the deflator is a by- productofthat process. Accordingly, we set out to analyze the behavior of com- ponents of the two series, in order to isolate where problems arise, and to indicate which components need to be studied more closely. Another way to describe the approach we use is the following. We want to design a test to determine where discrepancy between the two price measures originates. We compare, statistically, behavior of counterpart components from the two indexes. If we find that comparison of matched series from PCE and CPI indicates that all's well at that point, then index users and others interested in the behavior of the two indexes may confidently turn to consideration of weighting patterns, or PCE components not derived from the CPI, as the explanationof index differences, and act accordingly. If, on the other hand, we find (as we do) that even matched components of the PCE and the CPI differ in movement, then the question becomes oneofdetermining why this should be so, and users should be alerted to a different set of factors which must be considered before choosing between the two indexes. THE STATISTICAL MODEL AND THE DATA If a CPI component is used alone as the deflating index in constructing a componentofthe PCE, then the process for computing the national accounts, and the implicit price deflator, implies values for regression coefficients in the relation (1) L\PCE = c + fJ(ACPI) -I- r. There are two hypotheses to be tested. First, we test4 the joint hypothesis that [El [01 the values of the regression parameters are[] = [j,The second hypothesis By means of the F-test outlined in: Franklin A. (iraybill, An introduction to Linear Stwstica1 Models, Vol. 1, pp. 128-133. 265 I refers to the fit of theregression. It is nor enough to find between a PCE that there is some relation component and the CPI. Sincemost of the questions posed by deviations between the PCE and the CPI have to do withthe variability of short- term movements (ratherthan trcnd behavior), testing excessive degree of variablity the components foran is of equal importanceto testing values of there- gression parameters TheFisherz-statistic5may be adapted to provide appropriate test of theR2. an The z-statis(ic approachesinfinity as the correlation coefficient approachesunity, so it is not possible, strictlyspeaking, to test the hypothesis R= I; we can, however, use the 2-statistic R to test the hypothesis that takes on some arbitraryvalue close to (but chose R not actually equal to) unity. We = 0.95 (or R2 = 0.90) as a reasonablevalue for testing.6 What we will hereafter refer to as our "generalhypothesis" is: Components of the PCE deflatorare reflecting the measure of price counterpart series in the CPJ used change obtained from the as an input for the PCEmeasure.
Load more

Recommended publications
  • Using Price Indexes
    INFORMATION BRIEF Research Department Minnesota House of Representatives 600 State Office Building St. Paul, MN 55155 Pat Dalton, Legislative Analyst, 651-296-7434 Kathy Novak, Legislative Analyst, 651-296-9253 Updated: November 2009 Using Price Indexes This information brief is a nontechnical guide to the use of price indexes. It explains the difference among the three most commonly used price indexes and suggests when each index should be used. Additionally, this information brief shows how to make some common calculations using price indexes. Contents Price Indexes and Their Uses ...........................................................................................................2 Descriptions of the Major Price Indexes ..........................................................................................2 Gross Domestic Product Chain-Weighted Price Index ..............................................................2 Consumer Price Index (CPI) ......................................................................................................4 Producer Price Index (PPI) ........................................................................................................5 Glossary of Price Index Terms ........................................................................................................7 Common Calculations Using Price Indexes ....................................................................................8 Summary of Major Price Indexes ..................................................................................................10
    [Show full text]
  • Decoupling of Wage Growth and Productivity Growth? Myth and Reality
    Decoupling of Wage Growth and Productivity Growth? Myth and Reality João Paulo Pessoa Centre for Economic Performance, London School of Economics John Van Reenen Centre for Economic Performance, London School of Economics, NBER and CEPR January 29th 2012 – Preliminary Abstract It is widely believed that in the US wage growth has fallen massively behind productivity growth. Recently, it has also been suggested that the UK is starting to follow the same path. Analysts point to the much faster growth of GDP per hour than median wages. We distinguish between “net decoupling” – the difference in growth of GDP per hour deflated by the GDP deflator and average compensation deflated by the same index ‐ and “gross decoupling” – the difference in growth of GDP per hour deflated by the GDP deflator and median wages deflated by a measure of consumer price inflation (CPI). We would expect that over the long‐run real compensation growth deflated by the producer price (the labour costs that employers face) should track real labour productivity growth (value added per hour), so net decoupling should only occur if labour’s share falls as a proportion of gross GDP, something that rarely happens over sustained periods. We show that over the past 40 years that there is almost no net decoupling in the UK, although there is evidence of substantial gross decoupling in the US and, to a lesser extent, in the UK. This difference between gross and net decoupling can be accounted for essentially by three factors (i) wage inequality (which means the average wage is growing faster than the median wage), (ii) the wedge between compensation (which includes employer‐provided benefits like pensions and health insurance) and wages which do not and (iii) differences in the GDP deflator and the consumer price deflator (i.e.
    [Show full text]
  • How to Adjust for Inflation -Statistical Literacy Guide
    Statistical literacy guide1 How to adjust for inflation Last updated: February 2009 Author: Gavin Thompson This note uses worked examples to show how to express sums of money taking into account the effect of inflation. It also provides background on how three popular measures of inflation (the GDP deflator, the Consumer Price Index, and the Retail Price Index) are calculated. 1.1 Inflation and the relationship between real and nominal amounts Inflation is a measure of the general change in the price of goods. If the level of inflation is positive then prices are rising, and if it is negative then prices are falling. Inflation is therefore a step removed from price levels and it is crucial to distinguish between changes in the level of inflation and changes in prices. If inflation falls, but remains positive, then this means that prices are still rising, just at a slower rate2. Prices are falling if and only if inflation is negative. Falling prices/negative inflation is known as deflation. Inflation thus measures the rate of change in prices, but tells us nothing about absolute price levels. To illustrate, the charts opposite show the same underlying data about prices, but the first gives the Inflation B level of inflation (percentage changes in prices) A while the second gives an absolute price index. This C shows at point: 0 E A -prices are rising and inflation is positive D B -the level of inflation has increased, prices are rising faster Prices B C -inflation has fallen, but is still positive so prices C D are rising at a slower rate A E D -prices are falling and inflation is negative 100 E -inflation has increased, but is still negative (there is still deflation), prices are falling at a slower rate (the level of deflation has fallen) The corollary of rising prices is a fall in the value of money, and expressing currency in real terms simply takes account of this fact.
    [Show full text]
  • Chapter 1. General Aspects of Service Producer Price Indices Compilation
    1. GENERAL ASPECTS OF SERVICE PRODUCER PRICE INDICES COMPILATION - 19 Chapter 1. General aspects of Service Producer Price Indices compilation This chapter gives an overview of general aspects of service producer price indices (SPPIs) compilation. The chapter presents methodological information on the core measurement issues of SPPIs that the compiler will have to deal with when starting compilation and discusses the definition, uses and scope of SPPIs; product and industry SPPIs; the price concept underlying SPPIs; the appropriate statistical units; the international classifications; the identification of service products; the sample frame and weights and; the treatment of quality changes. Efforts have been made to present discussions in line with the Producer Price Index Manual (PPI Manual)1 and to focus on service-specific aspects of producer price indices (PPIs) compilation by developing further the conceptual framework. EUROSTAT-OECD METHODOLOGICAL GUIDE FOR DEVELOPING PRODUCER PRICE INDICES FOR SERVICES © OECD/European Union, (2014) 20 - 1. GENERAL ASPECTS OF SERVICE PRODUCER PRICE INDICES COMPILATION 1.1. Definition, uses and scope of Service Producer Price Indices 1.1.1. Definition of SPPIs SPPIs are defined for the purposes of this Guide as output price indices for services that provide measures of the average movements of prices – valued at basic prices – received by domestic service producers. SPPIs are therefore a subset of output PPIs. 1.1.2. Uses and Objectives of SPPIs SPPIs serve two main functions. The first is to provide an indication of price change by producers of services, and therefore an indicator of inflationary pressure. The second is to provide a suitable deflator of nominal values of output or intermediate consumption for the compilation of production volumes in the national accounts.
    [Show full text]
  • GDP As a Measure of Economic Well-Being
    Hutchins Center Working Paper #43 August 2018 GDP as a Measure of Economic Well-being Karen Dynan Harvard University Peterson Institute for International Economics Louise Sheiner Hutchins Center on Fiscal and Monetary Policy, The Brookings Institution The authors thank Katharine Abraham, Ana Aizcorbe, Martin Baily, Barry Bosworth, David Byrne, Richard Cooper, Carol Corrado, Diane Coyle, Abe Dunn, Marty Feldstein, Martin Fleming, Ted Gayer, Greg Ip, Billy Jack, Ben Jones, Chad Jones, Dale Jorgenson, Greg Mankiw, Dylan Rassier, Marshall Reinsdorf, Matthew Shapiro, Dan Sichel, Jim Stock, Hal Varian, David Wessel, Cliff Winston, and participants at the Hutchins Center authors’ conference for helpful comments and discussion. They are grateful to Sage Belz, Michael Ng, and Finn Schuele for excellent research assistance. The authors did not receive financial support from any firm or person with a financial or political interest in this article. Neither is currently an officer, director, or board member of any organization with an interest in this article. ________________________________________________________________________ THIS PAPER IS ONLINE AT https://www.brookings.edu/research/gdp-as-a- measure-of-economic-well-being ABSTRACT The sense that recent technological advances have yielded considerable benefits for everyday life, as well as disappointment over measured productivity and output growth in recent years, have spurred widespread concerns about whether our statistical systems are capturing these improvements (see, for example, Feldstein, 2017). While concerns about measurement are not at all new to the statistical community, more people are now entering the discussion and more economists are looking to do research that can help support the statistical agencies. While this new attention is welcome, economists and others who engage in this conversation do not always start on the same page.
    [Show full text]
  • BLS Handbook of Methods, Chapter 17. the Consumer Price Index
    Chapter 17. The Consumer Note: To reflect new sample areas and pricing cycles (Updated 2-14-2018) effective with the geographic revision with January 2018 Price Index data, appendix 1 has been updated and appendix 4 has been replaced. Changes have been made to several areas; please consult appendix 4 for the current list. The entire CPI chapter of the Handbook of Methods is being up- dated and is expected to be published in 2020. he Consumer Price Index (CPI) is a measure of the average change over time in the prices of consumer Titems—goods and services that people buy for day-to- IN THIS CHAPTER day living. The CPI is a complex measure that combines eco- Part I: Overview of the CPI ................................................ 1 nomic theory with sampling and other statistical techniques CPI concepts and scope .................................................. 2 and uses data from several surveys to produce a timely and CPI structure and publication ......................................... 3 precise measure of average price change for the consumption Calculation of price indexes ........................................... 3 sector of the American economy. Production of the CPI re- CPI publication ............................................................... 3 quires the skills of many professionals, including economists, How to interpret the CPI ................................................ 5 statisticians, computer scientists, data collectors and others. Uses of the CPI ............................................................... 5 The CPI surveys rely on the voluntary cooperation of many Limitations of the index ................................................. 6 people and establishments throughout the country who, with- Experimental indexes ..................................................... 6 out compulsion or compensation, supply data to the govern- History of the CPI, 1919 to 2013 .................................... 7 ment’s data collection staff. Part II: Construction of the CPI ........................................
    [Show full text]
  • Introducing the Producer Price Index for Sri Lanka
    INTRODUCING THE PRODUCER PRICE INDEX FOR SRI LANKA WHAT IS A PRICE INDEX? A price index is a measure of the proportionate, or percentage, changes in a set of prices over time. Each month, prices are collected for a group of well-defined and clearly described products. These prices collected during a specific point in the month are compared with prices at another point in the past. One well-known example of a price index is a Consumer Price Index (CPI); however, there exists another important price index – the Producer Price Index (PPI). WHAT IS THE PRODUCER PRICE INDEX? The PPI measures the average change over time in the prices received by domestic producers of goods and services. The PPI is very important to Sri Lanka for a variety of reasons. Up to the present, the Department of Census and Statistics (DCS) has published only one price index – the CPI. A CPI measures changes over time in the prices paid by consumers for a representative set of goods and services. The introduction of the PPI in Sri Lanka provides a more complete picture of price movement and trends for policy-makers and private sector decision-makers. WHY IS THE PRODUCER PRICE INDEX IMPORTANT? The PPI is an important economic indicator for Sri Lanka. Uses of the PPI include: A) Indicator of inflationary trends – Sri Lanka’s monthly PPI with detailed industry data will serve as a leading indicator of price change in the economy. B) Deflator of economic series – The PPI will be used to deflate gross domestic product (GDP) estimates to create a series in constant terms.
    [Show full text]
  • Analysis of the Differences Between the Rates of Inflation Associated with Two Aggregate Price Level
    EKONOMIA ETA ENPRESA ZIENTZIEN FAKULTATEA FACULTAD DE CIENCIAS ECONÓMICAS Y EMPRESARIALES Degree in Economics 2014 / 2015 ANALYSIS OF THE DIFFERENCES BETWEEN THE RATES OF INFLATION ASSOCIATED WITH TWO AGGREGATE PRICE LEVEL The case of the euro area and United States Author: Jade Mateo Álvarez Director: Jesús Vázquez Pérez Bilbao, 4 th September 2015. ANALYSIS OF THE DIFFERENCES BETWEEN THE RATES OF INFLATION ASSOCIATED WITH TWO AGGREGATE PRICE LEVEL JADE MATEO ÁLVAREZ INDEX OF CONTENTS 1. INTRODUCTION ................................................................................................................. 1 2. DESCRIPTIVE ANALYSIS ...................................................................................................... 2 The euro area........................................................................................................................ 4 The United States .................................................................................................................. 7 3. ECONOMETRIC ANALYSIS ................................................................................................ 10 The theory of stationary ...................................................................................................... 10 Dickey-Fuller (ADF) .............................................................................................................. 11 Estimation procedure stationary time series ........................................................................ 12 Analysis of the stationarity
    [Show full text]
  • On-Line Glossary of Terms & Concepts
    ECONOMICS FOR EVERYONE: ON-LINE GLOSSARY OF TERMS & CONCEPTS By Jim Stanford © Canadian Centre for Policy Alternatives, 2008 Non-commercial use and reproduction, with appropriate citation, is authorized. This glossary contains non-technical descriptions of all the terms in Economics for Everyone highlighted in SMALL CAPITALS. Italicized terms within the definitions are themselves defined elsewhere in the glossary, for cross-reference. Absolute Poverty: Poverty defined with respect to an absolute material standard of living. Someone is absolutely poor if their income does not allow them to consume enough to purchase a minimum bundle of consumer goods and services (including shelter, food, and clothing). An alternative approach is to measure relative poverty. Accelerator, Investment: Investment spending stimulates economic growth, which in turn stimulates further investment spending (as businesses enjoy stronger demand for their products). This positive feedback loop (investment causes growth which causes more investment) is called the accelerator. Allocative Efficiency: A neoclassical concept referring to the allocation of productive resources (capital, labour, etc.) in a manner which best maximizes the well-being (or “utility”) of individuals. Automatic Stabilizers: Government fiscal policies which have the effect of automatically moderating the cyclical ups and downs of capitalism. Examples include income taxes (which collect more or less taxes depending on the state of the economy) and unemployment insurance benefits (which automatically replace lost income for people who lose their jobs). Balanced Budget: An annual budget (such as for a government) in which revenues perfectly offset expenditures, so that there is neither a deficit nor a surplus. Balanced Budget Laws: Laws (usually passed by right-wing governments) which require governments to run balanced budgets regardless of the state of the overall economy.
    [Show full text]
  • Economy Wide-GDP Deflator: – Refers to All Goods and Services Produced Within Country – Includes Exports (E.G
    DEFLATION OF HEALTH SPENDING By SHA TEAM 16th OECD Meeting of Heath Accounts Experts 22-23 October 2014 Why do we need to deflate? • JHAQ is submitted in nominal NCU • Compare data over time – Absorb changes in prices – Compare change in volume (quantities) “real” growth rates (at constant prices) • Compare data across countries – Absorb differences in price levels – Compare differences in volumes Health spending in USD PPP Huge difference in inflation CPI (2005=100) Turkey 180 Iceland 160 140 OECD 120 Switzerland 100 Japan 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 Need for deflation Current practice to report health spending in constant prices • OECD. Stat/ H@G Publications – Economy-wide GDP deflator Not health- – Consumer price index specific OECD averages with GDP deflator • In National Publications – 12 countries publish health spending in constant prices – Different national approaches used – Different extent of health-specificity of deflators Not directly comparable Approaches to country specific deflator • Use CPI for private spending and create other indices for public spending • Create volume indices for a number of providers • Include additional price indices – Wholesale price index – Producer price index • Use existing deflators created by third parties (statistical offices) Suggestions in chapter 13 of SHA 2011 sophisticated method used in Norway Available Alternative Indices • Economy wide-GDP deflator: – Refers to all goods and services produced within country – Includes exports (e.g. raw commodities) • Consumer
    [Show full text]
  • NHE Deflator Methodology
    NHE DEFLATOR—INTERMEDIATE SUMMARY National Health Expenditures National Health Expenditures (NHE) in the United States include all spending related to the purchase of health care goods and services during the year and the amount invested to procure future health services.1 Historically, U.S. health care spending has grown faster than most other sectors of the economy. Differences in the annual growth rates of the NHE reflect trends in the factors that drive health care spending, including: 1. Increases in technological developments 2. Changes in the age and sex composition of the population (demographic effect) 3. Changes in the use and mix (or intensity) of health care services 4. Changes in prices for health care goods and services The NHE has traditionally been reported in nominal terms (current dollar) and has not been adjusted to remove the impact of changes in health care prices (constant or real dollars). Although a price index for Personal Health Care (PHC) goods and services has been available for many years, there has not been, until now, a corresponding price index for the aggregate NHE. The Office of the Actuary in the Centers for Medicare and Medicaid Services (CMS) released its new chain-weighted NHE price deflator with the publication of the 2011 NHE Accounts (NHEA). The new chain-weighted NHE price deflator, which is available for 2004 – 2011, allows for the analysis of total health spending in real terms. Real estimates of health sending can now be compared to trends in underlying non-price factors such as population, utilization, intensity, mix of goods and services, and demographics.
    [Show full text]
  • Main Economic Indicators, Comparative Methodological Analysis
    MAIN ECONOMIC INDICATORS COMPARATIVE METHODOLOGICAL ANALYSIS: CONSUMER AND PRODUCER PRICE INDICES Volume 2002, Supplement 2 FOREWORD This publication provides comparisons of methodologies used to compile consumer and producer price indices published by the OECD for its Member countries. It is the second in a series of such publications. The first publication covered industry, retail and construction indicators. A third publication covering employment and unemployment indicators will be published towards the end of 2002. These indicators are published in the monthly OECD publication, Main Economic Indicators (MEI). The primary purpose of this publication and the companion publication, Main Economic Indicators: Sources and Definitions published in July 2000, is to provide users with methodological information underlying the short-term indicators published in MEI. Such information is essential to ensure their appropriate use in an international context by analysts. The information will also enable national statistical institutes and other agencies responsible for compiling short-term economic indicators to compare their methodology and data sources with those used in other countries. In addition, this publication also contains a significant amount of information relating to recommendations on best practice for the compilation of consumer and producer price indices. Such information will be of use to countries in the process of creating their own indicators or overhauling existing indicators.The companion publication, Main Economic Indicators: Sources and Definitions, provides summary descriptions of individual country methodologies used in the compilation of short-term economic indicators for Member countries and for non-member countries within the program of activities of the Centre for Co-operation with Non-Members (CCNM).
    [Show full text]