The laspeyres price index is an index formula used in price statistics for measuring the price development of the basket of goods and services consumed in the base period. Stata module to estimate price, quantity, and value index numbers, statistical software components s458005, boston college department of economics. The question it answers is how much a basket that consumers bought in the base period would cost in the current period. Again, the index is normalized to 100 for the base year, so the rate of inflation using the paasche index is. On 17 august 2012 the bbc radio 4 program more or less noted that the carli index, used in part in the british retail price index, has a builtin bias towards recording inflation even when over successive periods there is no increase in prices overall. Oecd glossary of statistical terms laspeyres volume. More software in statistical software components from boston college department of economics boston college, 140 commonwealth avenue, chestnut hill ma 02467 usa. Stata is a generalpurpose statistical software package created in 1985 by statacorp. New stata module to estimate price, quantity, and value index. Statistical software components from boston college. Maintenance holders are entitled to free upgrades of all new releases of the stata software to which the maintenance relates. A laspeyres index number is a form of index number where prices, quantities or other units of measure over time are weighted according to their values in a specified base period.
Decomposition analysis for policymaking in energy which. A laspeyres volume index is a weighted arithmetic average of quantity relatives using the values of the earlier period as weights. We offer discounts on academic, volume and network. This method was adopted by new zealand in the major revision of 1993 and is used in all aggregations above the calculation of. Subscribe today and give the gift of knowledge to yourself or a friend efficiency and productivity measurement index numbers efficiency and productivity measurement. Muhammad rashid ansari and chiara mussida additional contact information muhammad rashid ansari. The typical use of a fixedweight price index is to measure the price changes in a selected basket of goods. In 1738 french economist nicolas dutot proposed using an index calculated by dividing the.
Hi, thank you very much for your help i found all i needed in the advised threads. I collected data for the relevant price index and rereferenced this to feb. The stata newsa periodic publication containing articles on using stata and tips on using the software, announcements of new releases and updates, feature highlights, and other announcements of interest to interest to stata usersis sent to all stata users and those who request information about stata from us. Am trying to create an index variable var4 by adding three component variables var1, var2, var3. This price index is defined as sumpnq0sump0q0, where. Stata is statistics software suited for managing, analyzing, and plotting quantitative data, enabling a variety of statistical analyses to be performed. Stata is a powerful statistical software that enables users to analyze, manage, and produce graphical visualizations of data. For the sake of this example, say there are only three things that matter.
Stata offers further discounts for department purchase for student labs minimum 10 licenses. An important feature of the laspeyres formula is that it takes into account not only the price something sold for, but also the quantity that was sold. It is a statistic designed to help to compare how these price relatives, taken as a whole, differ between time periods or geographical locations. A laspeyres price index is computed by taking the ratio of the total cost of purchasing a specified group of commodities at current prices to the cost of that same group at baseperiod prices and. Measuring productivity using the index number approach.
Stata 11 price list academic new purchases 1st user 2nd user 3rd 5th user 6th 10th user 11th 25th user 26th 50th. Guidelines for constructing consumption aggregates for welfare. Vars 1 and 2 range from 0100 and var3 is a 01 variable. Stata is a complete, integrated software package that provides all your data science needsdata manipulation, visualization, statistics, and automated reporting. The fixed part of this type of index is the quantity of each item.
I would like stata to divide the sum of the variables by the number of valid variables for that specific case. Many problems in data management center on relating values to values in other observations, either within a dataset as a whole or within groups such as panels. Estimating total factor productivity of agricultural. Changes in the index show the amount of price inflation or deflation for the items picked as index constituents. This module should be installed from within stata by typing ssc install index. Buy single user licenses online or contact our sales team to get a custom quotation. It is primarily used by researchers in the fields of economics, biomedicine, and political science to examine data patterns. Stata module to estimate price, quantity, and value index numbers. We have selected these methods based on the theoretical foundation and application viewpoints as explained in section 5. How to calculate fixed weightprice index bizfluent.
This price index is defined as sumpnq0sump0q0, where q0 and p0 and prices in the first period and pn is the price in the current period. Gdp, l 1l 0 is the index of labor, k 1k 0 is the index of capital, and a 1a 0 is the productivity index the residual. The means of these observations are used as base prices and quantities, or c a logical vector with the same length as the data. Scoring the index you then assign scores for particular responses, thereby making a composite variable out of your several items 4. A toolbox for calculating and decomposing total factor. Dear statlist, i would like to ask you for a help with computing laspeyres index. Bibliographic data for series maintained by christopher f baum. If you want a quantity index, make sure only the quantities in the numerator and denominator correspond to different time periods. Laspeyres price index overview, formula, and example. Index formula and parameters arguments the index function has different arguments or parameters as some people calls it. For a laspeyres index that attempts to capture the movement of prices in general, or within a certain sector of the economy, the calculation can involve thousands of goods and services. If, say, people buy twice as much milk as they do bread. Note on cpi laspeyres, paasche and fischer indices 20 1.
I would usually do this in a spreadsheet before importing to stata. Marshalledgeworth, walsh, bowley, mitchell, geometric laspeyres, harmonic mean, and simple index numbers. A variant of the basic calculation known as the laspeyres price relative is used by many statistical agencies for the calculation of consumer price indexes. Stata module to estimate price, quantity, and value index.
On april 23, 2014, statalist moved from an email list to a forum, based at. Which is the best software to run panel data analysis. The laspeyres index is practical and easy to interpret. The response scale is the same for all 5 and because it is an experimental data, only people in the third experimental group get to answer these questions. Constructing indices and scales bowling green state. The laspeyres price index is a consumer price index used to measure the change in the prices of a basket of goods and services relative to a specified base period weighting. Stata corporation provides deep discounts to ucla departments, faculty, staff, and students for their statistical products via the stata campus gradplan. Stata module to estimate price, quantity, and value. Total factor productivity toolbox is a new set of functions to calculate the main total factor productivity tfp indices and their decompositions, based on shephards distance functions, and using data envelopment analysis dea programming techniques.
Developed by german economist etienne laspeyres, the laspeyres price index is also called the base year quantity weighted method. A laspeyres index is a way of expressing how prices today compare with those at some point in the past. This module should be installed from within stata by typing ssc install pindex. Stata module to estimate price, quantity, and value index numbers, statistical software components s458005. For information about the available products, pricing, and ordering process please see stata. The describe command identifies the storage type of vars 1 and 2 as float and vars3 as byte. It is defined as a fixedweight, or fixedbasket, index that uses the basket of. Insead business school statistical software components from boston college department of economics. Oecd glossary of statistical terms laspeyres index. Hello, i have four variables which are supposedly measuring 4 dimensions of the same concept. Stata module to compute targeted price indices, statistical software components s457812, boston college department of economics. The package includes code for the standard malmquist, moorsteenbjurek, priceweighted and shareweighted tfp indices. A dictionary of statistical terms, fourth edition, kendall, sir maurice g. Date prev date next thread prev thread next date index thread index.
In general a productivity index is defined as the ratio of an output quantity index to an input quantity index, that is. A1 includes the 6 stata programs used to construct the consumption. Adjustment of the 2008 weights to the current cpi methodology 2012 weights in order to compare the laspeyres and paasche indices and accurately calculate the fisher index, the laspeyres index based on 2008 weights should be updated to match with the most current weights 2012. Validating it item analysis the association between this index and other related measures. Most of its users work in research, especially in the fields of economics, sociology, political science, biomedicine, and epidemiology statas capabilities include data management, statistical analysis, graphics, simulations, regression, and custom programming. Thanks, nick very useful addition to my stata references. Hence, the laspeyres price index becomes a geometrically weighted average of prices. The means of the observations indicated as true are used as base prices and quantities.