National practices in quality adjustments for specific items

Article type: Research Article

Authors: Bratanova, Lidia^{; 1}

Affiliations: Statistical Division, Economic Commission for Europe, Palais des Nations, CH-1211 Geneva 10, Switzerland

Note: [1] The ECE secretariat carried out a survey of national practices in making quality adjustments for specific items in ECE member countries. The present paper was prepared on the basis of country contributions. It was presented for discussion at the Joint ECE/ILO Meeting on CPI held in Geneva, 24–27 November 1997.

Abstract: The quality change bias in the Consumer Price Index (CPI) is one of the biases most often discussed. Adjusting for changes in product quality is a major problem which those who deal with price indices must face. Some experts argue that the largest share of the bias in the CPI arises from the failure to make adequate adjustment for changes in the quality of the goods and services people buy. Most of the ECE member countries have procedures in place which are designed to account for changes in the quality of the items which are priced. Hedonic methods are obviously of increasing importance in some countries although there are still some reservations about these.

DOI: 10.3233/SJU-1998-15106

Journal: Statistical Journal of the United Nations Economic Commission for Europe, vol. 15, no. 1, pp. 97-110, 1998