Publication details
Zkreslení při měření inflace ve světle obecné teorie indexních čísel
| Title in English | Biases in the measurement of inflation in the light of the general index number theory |
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| Authors | |
| Year of publication | 2003 |
| Type | Article in Proceedings |
| Conference | Kvantitatívne metódy v ekonómii-kompatibilita metodológie a praxe s podmienkami Európskej únie |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | measurement of inflation; CPI; index number theory |
| Description | Knowledge of mathematical theory of index numbers may substantially help in seeking the adequate price index suitable for expressing the level of inflation: The optimal choice is an ideal Fisher index, but using of the Walsh, Marshall-Edgeworth or Törnquist indices may be applied as the good fit as well. The bias arising due to commodity substitution in the consumer basket may be (at least approximately) estimated, if we know the variability of the price vector of commodities included. Similarly, evaluation of the actual vs. published inflation due to displacing of the standard (small and medium) outlets by the supermarkets and by the discount sellers can be approximately known from the data on tendencies of this superceding and from the average prices both groups of them. If we sum impacts of all types of these biases, we can come to the values of the 1,44 or 2,15 percent (net or total inflation). In the prices of the Czech economy of the last 15 years, all the bias causing factors have occured. In view of the methodical convency of the Czech statistical bureau (Laspeyres price index), it may be derived that the actual impact of inflation on the most of the population in the Czech republic between 1993-2002 was at least 1,5% percent lower the the published CPI indicator. |
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