Price indexes for elementary aggregates: the sampling approach

Abstract: At the lowest level of aggregation of a CPI or PPI quantity information is usually unavailable and nothing but matched samples of prices are used for the index computation. Familiar indexes used at this level of aggregation are those of Dutot, Carli, and Jevons. An important, yet often overlooked characteristic of these and similar indexes is that they are sample statistics, whose properties can be studied from the sampling point of view. This paper provides a systematic study of this topic and concludes with a number of recommendations for statistical practice.