Application of Stochastic Index Numbers in Inflation Measurement – the Case of Poland
The stochastic approach is a specific way of viewing index numbers, in which uncertainty and statistical properties play a central role. This approach, applied to the prices, treats the underlying rate of infl ation as an unknown parameter that has to be estimated from the individual prices. Thus, t...
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| Format: | Article |
| Language: | English |
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Czech Statistical Office
2014-06-01
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| Series: | Statistika: Statistics and Economy Journal |
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| Online Access: | http://www.czso.cz/csu/2014edicniplan.nsf/engc/01003BF6F0/$File/32019714q2046.pdf |
| Summary: | The stochastic approach is a specific way of viewing index numbers, in which uncertainty and statistical properties play a central role. This approach, applied to the prices, treats the underlying rate of infl ation as an unknown parameter that has to be estimated from the individual prices. Thus, the stochastic approach provils the whole probability distribution of inflation. In this paper we present and discuss several basic stochastic index numbers. We propose a simple stochastic model, which leads to a price index formula being a mixture of the previously presented specifi cations. We verify the considered indices on a real data set. |
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| ISSN: | 1804-8765 1804-8765 |