Page of

Should Exact Index Numbers Have Standard Errors?

Should Exact Index Numbers Have Standard Errors?

Theory and Application to Asian Growth

Chapter:
(p.483) 16 Should Exact Index Numbers Have Standard Errors?
Source:
Hard-to-Measure Goods and Services
Author(s):
Robert C. FeenstraMarshall B. Reinsdorf
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226044507.003.0017

This chapter examines the relatively neglected issue of estimating sample variance in the context of constructing exact index numbers. Published index numbers are rarely accompanied by an indicator of variability, and it is thus difficult to assess whether a new estimate is significantly different from the previous one. The chapter applies the analysis to the specific case of total factor productivity (TFP) indexes, and examines the question of whether TFP growth in Singapore has been negative or positive, which has become an issue of considerable controversy.

Keywords:   sample variance, index numbers, total factor productivity, Singapore

Sign In

Copyright © 2021. All rights reserved.
Privacy Policy and Legal Notice