Analyzing price movements within the Producer Price Index Final Demand–Intermediate Demand aggregation system

Producer price highlights, 1998

Selection Effects in Producer-Price Setting

We use micro data on product prices linked to information on the firms that set them to test for selection effects (state dependence) in micro-level producer pricing. In contrast to using synthetic data from a canonical menu-cost model, we find very weak, if any, micro-level selection effects when running price change probability regressions on actual data. Moreover, when fitting a model that n...

Aggregation Effects on Price and Expenditure Elasticities in a Quadratic Almost Ideal Demand System

AGGREGATION EFFECTS ON PRICE AND EXPENDITURE ELASTICITIES IN A QUADRATIC ALMOST IDEAL DEMAND SYSTEM Frank T. Denton and Dean C. Mountain

The Effects of Sample Size on Variances of the Producer Price Index

The PPI is a modified Laspeyres index which estimates a fixed input output price index model. Since the 1978 revision of the PPI, the industry output indexes have been based on the Standard Industrial Classification (SIC). Samples are drawn separately for four digit SIC industries, where each industry is assigned a publication structure prior to sampling. The publication structure partitions th...

House Price Index Methodologies