No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
The Bank of Finland's consumption price index
... Inspired by the Malmquist index, Caves et al. (1982) applied this index to production analysis, and reconstructed a productivity index through the ratio of distance functions, and this index was renamed the MPI. In a framework of full technical efficiency, Caves et al. (1982) regarded the MPI as a theoretical index and revealed its relationships to the Törnqvist index (Törnqvist, 1936), and proved that the geometric mean of MPI and Tornqvist index are equivalent under certain conditions. The MPI has several desirable features, so it is used in many applications. ...
... Generally, the Fisher (1922) and the Törnqvist (1936) index require prices of all inputs and outputs in order to aggregate to form a total factor productivity index, so these indexes can be computed from observed prices and quantities (Chung et al., 1997). Caves et al. (1982), Färe et al. (1982) and Balk (1993) showed that, given certain conditions, i.e., the two observations of production technology are assumed to be technically efficient, the Fisher and the Törnqvist index approximate the Malmquist index. ...
Accepted by: Aris Syntetos
Management-led productivity improvements are crucial for achieving sustainable development, and the Malmquist productivity index is known to be useful in relevant contexts. This study aims to extend such index by using non-parametric mathematical modelling of production processes. Specifically, and in the spirit of the existing index, we introduce the directional distance function to develop a new one applicable to the joint production of desirable and undesirable outputs. Furthermore, we decompose the new index into two constituent components to provide more intuitive explanations when revealing the root sources of productivity changes over time. Under the cost minimization assumption, the new index is applicable when producers implement resource allocation management, and the input–output quantities and the micro-level input prices are known. The index emphasizes that the allocative efficiency should be regarded as an important aspect of productivity assessment like the technical efficiency. As a practical benchmarking tool, it can offer valuable information and provide appropriate strategies for managerial decision-making. The index’s application and usefulness is demonstrated in the commercial bank sector in China.
... Inspired by the Malmquist index, Caves et al. (1982) applied this index to production analysis, and reconstructed a productivity index through the ratio of distance functions, and this index was renamed the MPI. In a framework of full technical efficiency, Caves et al. (1982) regarded the MPI as a theoretical index and revealed its relationships to the Törnqvist index (Törnqvist, 1936), and proved that the geometric mean of MPI and Tornqvist index are equivalent under certain conditions. The MPI has several desirable features, so it is used in many applications. ...
... Generally, the Fisher (1922) and the Törnqvist (1936) index require prices of all inputs and outputs in order to aggregate to form a total factor productivity index, so these indexes can be computed from observed prices and quantities (Chung et al., 1997). Caves et al. (1982), Färe et al. (1982) and Balk (1993) showed that, given certain conditions, i.e., the two observations of production technology are assumed to be technically efficient, the Fisher and the Törnqvist index approximate the Malmquist index. ...
Management-led productivity improvements are crucial for achieving sustainable development, and the Malmquist productivity index is known to be useful in relevant contexts. This study aims to extend such index by using non-parametric mathematical modeling of production processes. Specifically, and in the spirit of the existing index, we introduce the directional distance function to develop a new one applicable to the joint production of desirable and undesirable outputs. Furthermore, we decompose the new index into two constituent components to provide more intuitive explanations when revealing the root sources of productivity changes over time. Under the cost minimization assumption, the new index is applicable when producers implement resource allocation management, and the input-output quantities and the micro-level input prices are known. The index emphasizes that the allocative efficiency should be regarded as an important aspect of productivity assessment like the technical efficiency. As a practical benchmarking tool, it can offer valuable information and provide appropriate strategies for managerial decision-making. The index's application and usefulness is demonstrated in the commercial bank sector in China.
... We advocate using the Divisia index, in its Törnqvist (1936) discrete time version, to track M t = M(m t , c t ), as Barnett (1980) has previously advocated for tracking M t = M(m t ). If there should be reason to track the credit card aggregate separately, the Törnqvist−Divisia index similarly could be used to track C t = C(c t ). ...
... In discrete time, however, many different approximations to (22) are possible, because ω it andω it need not be constant during any given time interval. By far the most common discrete time approximations to the Divisia index is the Törnqvist−Theil approximation (often called the Törnqvist (1936) index or just the Divisia index in discrete time). That index can be viewed as the Simpson's rule approximation, where t is the discrete time period, rather than an instant of time: ...
While credit cards provide transaction services, they have never been included in measures of money supply. We derive the theory to measure the joint services of credit cards and money and propose two measures of their joint services: one based on microeconomic structural aggregation theory, providing an aggregated variable within the macroeconomy; the other a credit‐card‐extended aggregate, optimized as an indicator to capture the contributions of monetary and credit card as nowcasting indicator of nominal GDP. The inclusion of the new aggregates yields substantially more accurate nowcasts of nominal GDP, illustrating the usefulness of the information contained in credit cards.
... The results of works dealing with this subject, however are not always unanimous. For instance, Feenstra and Shapiro (2003) examine scanner data on canned tuna and find that the chain Törnqvist price index (Törnqvist, 1936) leads to upward chain drift caused by sales. In the paper by de Haan (2008), the same price index formula is used but the author, studying data on detergents, finds that sales lead to downward bias. ...
... As it was above-mentioned, even chained superlative indices, e.g. the chain Fisher (1922) or Törnqvist (1936) index, may suffer from the chain drift problem (Chessa, 2015). One way to deal with this problem is to use chain (unweighted) Jevons (1865) ...
Scanner data mean electronic transaction data that specify product prices and their expenditures obtained from supermarkets’ IT systems by scanning bar codes (i.e. GTIN or SKU). Scanner data are a relatively new and cheap data source for the calculation of the Consumer Price Index (CPI) and the biggest advantage of scanner data is the full product information they provide already at the lowest level of aggregation. Thus, the digitization of the public sector becomes not only something that is needed but an actual necessity resulting from organisational and economic premises (e.g.: reduction of costs or time related to obtaining data). One of main challenges while using scanner data is the choice of the right price index. The list of potential price indices, which could be used in the scanner data case, is quite wide, i.e. bilateral and multilateral indices are used in practice. One of the most important criterion in selecting index formula for scanner data case is the potential reduction of the chain drift bias. The chain drift occurs if the index differs from unity when prices and quantities revert back to their base level. In the paper we present situations on the market leading to the serious chain drift bias. Our main hypothesis is that lagging consumers’ reaction to price changes is the cause of the chain drift effect. Moreover, the article is an attempt to answer the question whether the correlation of prices and quantities may have an influence on the scale and sign of the bias of the measurement of price dynamics. The study focuses also on the scale of over- and underestimation the target full-window multilateral indices by their corresponding splicing extensions. Finally, the paper verifies a hypothesis that the identity test is a key property in reducing chain drift bias. In order to verify the above research problems, both empirical and simulation studies were carried out. Our main result is the confirmation of earlier suspicions that delayed consumer response and price-quantity correlation are determinants of chain drift bias.
... For this reason, by the integral mean value theorem, the integral can be approximately written in discrete form. The Törnqvist (1936) or Sato-Vartia (1976) index method can be used in the research. The article uses the more accurate Sato-Vartia index method [38][39][40]. ...
... The Törnqvist (1936) or Sato-Vartia (1976) index method can be used in the research. The article uses the more accurate Sato-Vartia index method [38][39][40]. ...
Regional energy development and approaches are significant for China’s overall economic and social development. The GDP in Zhejiang province surpassed 6 trillion yuan in 2019, and its energy consumption reached 200 million tons of standard coal (tce), both of which are at the forefront of China. In order to explore the main factors of the increase in energy consumption in Zhejiang and provide essential references for energy saving and other provinces, this paper analyzes the total energy consumption and industrial sectors on the basis of the logarithmic mean divisia index (LMDI) model. Study results show that the economy’s scale is the most crucial factor affecting Zhejiang’s energy consumption, with a significant growth effect. In 2015, the scale effect increased energy consumption to the highest value of 14 million tce and then reduced it to 13 million tce in 2019. The impact of the population on energy consumption increased by 10 million tce from 2010 to 2019. Energy intensity reduces energy consumption by between 0.05 and 0.15 billion tce per year, which is the main factor in reducing energy consumption. The energy structure generally plays a weak positive role due to the different energy types. The decomposition of the energy consumption per unit of value added in the industrial sector showed that the intensity and structural effect primarily reduce energy consumption, for example, the metal smelting and rolling, textile printing and paper, electric power, heating, and other industries. According to the results, enterprises should enhance the intelligence and efficiency of dispatch management and emergency responses. Zhejiang should also accelerate an international oil and gas trading center and resource allocation base to reach its carbon-neutrality goal.
... It is known (International Labour Office 2004) that P 1 im = P W and P 2 im = P F , where P W and P F denote the Walsh price index (Walsh 1901) and the Fisher price index (Fisher 1922) respectively. It can also be shown that P r→0 = P T and P 2 = P F , where P T denotes the Törnqvist price index (Törnqvist 1936). Since all the indices above are superlative, they can be considered good proxies for the COLI. ...
Scanner data are electronic transaction data that specify turnover and the number of items sold by barcodes, e.g., the Global Trade Article Number. These data are of particular value and interest to theorists and practitioners who wish to measure the Cost of Living Index or the Consumer Price Index, since their complete content makes it possible to compute any price index formula, including superlative indices or CES (Constant Elasticity Substitution) indices. Since the CES index requires the estimation of the elasticity of substitution, this paper focuses on verifying various methods of estimating this parameter based on scanner data. The paper considers both algebraic methods and methods based on the panel regression approach. The main achievement of the paper is the separation of the main factors that affect the estimated value of the elasticity of substitution, i.e., the type of data filter used and the level of data aggregation. The paper also verifies how the elasticity of substitution estimates affect the differences between the values of the CES indices based on these estimates.
... The production methods of Gandhi et al. (2020) fail to take into account the technical efficiency and technological progress at the aggregate level using European regional data. To capture technical efficiency and technological progress, we deploy the Törnqvist index method (Törnqvist, 1936) which is commonly use to analyze productivity (See & Coelli, 2014). ...
... An important remark is that Definition 2 restricts the scope of the paper to indices constructed from geometric averages. Examples are the Törnqvist, Sato-Vartia and Divisia indices, but alternatives exist, notably the Fisher, Laspeyres and Paasche indices (Törnqvist 1936, Sato 1976, Vartia 1976, Fisher 1922. A sprawling literature, duly explained by Eichhorn (1978), proposes sets of tests to evaluate which index is 'best'. ...
I introduce a general method to account for the distribution of underlying components (variety) in the growth of an aggregate quantity, using the notion of entropy. This accounting decomposition enables a number of insightful applications to index numbers in economics. The cross-entropy of GDP with respect to a benchmark captures the change in its distribution, and thus how well this benchmark matches data for price and volume indices across time. This 'error' changes demonstrably over time. Accounting of variety also lends itself to a decomposition of labour productivity growth by a technology component (how many more 'average' goods are produced per unit of labour?), and the allocation of labour (does the distribution of labour inputs converge to the distribution of outputs?) plus demand (does the distribution of expenditures diverge from the distribution of outputs?).
... Because several missing values are recorded at the community level (if, for instance, no store had a particular item or if the store was closed), the price was averaged across communities within the same primary sample units to reduce the impact of measurement errors. Because the prices are at the current level, and the survey does not provide consumer price indices to deflate prices, we compute a consumer price index at the PSU level following the Törnqvist procedure (Törnqvist, 1936). The reference price is that of the Moscow PSU in 1998, and the index is computed on a wide set of food commodities, excluding tobacco and alcohol items. ...
This paper tests whether young and adult smokers have different time preferences, in particular with respect to time consistency. The recent introduction of Tobacco 21 law in the US were in part motivated by allegedly inconsistent time preferences of the young consumers. This research empirically tests this hypothesis using individual cigarettes consumption longitudinal data from RLMS, estimating a quasi-hyperbolic discounting rational addiction model for young and adult smokers separately. While our test rejects time inconsistency in the form of present-bias for both population groups, young smokers are found to discount future utilities much more than adults. From a life-cycle perspective,this is still a form of time inconsistency, which provides partial empirical support to the T21 law motivation, but also highlights how the quasi-hyperbolic discounting formulation might not be able to properly capture long-run time preferences.
... The Tornqvist-Theil approximation is a second-order approximation to the continuous time Divisia index. See Theil (1967) and Törnqvist (1936). When applied to the above Divisia indices, the discrete-time approximations become ...
... See alsoAllen (1975),Diewert (1976Diewert ( , 1990Diewert ( , 1992Diewert ( , 1993Diewert ( , 2001,Diewert & Montmarquette (1983), Diewert & Nakamura (1993), Divisia (1925, Edgeworth (1888),Eurostat (2018), Fisher (1911, 1922), Frisch (1930,Hill(1988Hill( ,1993Hill( ,1996,Hulten (1973),ILO and others (2004, 2020), Jevons (1865), Laspeyres (1871), Lehr (1885),Lowe (1823),Marshall (1887),Paasche (1874),Stone (1956),Theil (1960),Tornqvist(1936), Tripplett (1981,UN and others (2009), US BEA (2023), US BLS (2023),Walsh (1901Walsh ( , 1921, World Bank (2023), Young (1812). ...
Globalization led to the integration of more economies and more labor sources into the global economy. The availability of cheap labor helped accelerate economic growth as well as dampening inflationary pressures. During the last three decades global inflation was very low. With COVID-19 pandemic things started to change. Prices dropped sharply during the first months of the pandemic. Then prices surged at a global level. The pandemic caused further disruptions in economic activity and created supply chain issues, leading to higher commodity and consumer prices. Moreover, governments trying to cope with the pandemic had significant increases in government expenditures and money supply. The average inflation rate reached the Great Recession levels in the middle months of 2020, while the median rate reached that level in October 2022. This study, after a brief introduction to theories of inflation, examines measurement issues, commodity prices and inflation relationship, supply chain issues, disequilibrium in labor markets, government expenditures, and monetary policy using country level data as well as global data where available.
... An important contribution to the creation of this theory was made by Laspeyres (1871) and Paasche (1874), whose formulas are still widely used by national statistical offices around the world. Since this theory has received a comprehensive development, and in terms of efficiency evaluation the basis are the works by Fisher (1922) and Törnqvist (1936). A detailed historical description of the index method is given by Diewert and Nakamura (2001). ...
... An important contribution to the creation of this theory was made by Laspeyres (1871) and Paasche (1874), whose formulas are still widely used by national statistical offices around the world. Since this theory has received a comprehensive development, and in terms of efficiency evaluation the basis are the works by Fisher (1922) and Törnqvist (1936). A detailed historical description of the index method is given by Diewert and Nakamura (2001). ...
... Please note that de Haan and van der Grient (2011) suggested that the Törnqvist price index formula (Törnqvist, 1936) could be used instead of the Fisher price index in the Gini methodology. Following Diewert and Fox (2018), the multilateral price comparison method involving the GEKS method based on the Törnqvist price index is called the CCDI method. ...
A wide variety of retailers (supermarkets, home electronics, Internet shops, etc.) provide scanner data containing information at the level of the barcode, e.g. the Global Trade Item Number (GTIN). As scanner data provide complete transaction information, we may use the expenditure shares of items as weights for calculating price indices at the lowest (elementary) level of data aggregation. The challenge here is the choice of the index formula which should be able to reduce chain drift bias and substitution bias. Multilateral index methods seem to be the best choice due to the dynamic character of scanner data. These indices work on a whole-time window and are transitive, which is key to the elimination of the chain drift effect. Following what is called an identity test, however, it may be expected that even when only prices return to their original values, the index becomes one. Unfortunately, the commonly used multilateral indices (GEKS, CCDI, GK, TPD, TDH) do not meet the identity test. The paper discusses the proposal of two multilateral indices and their weighted versions. On the one hand, the design of the proposed indices is based on the idea of the GEKS index. On the other hand, similarly to the Geary-Khamis method, it requires quality adjusting. It is shown that the proposed indices meet the identity test and most other tests. In an empirical and simulation study, these indices are compared with the SPQ index, which is relatively new and also meets the identity test. The analytical considerations as well as empirical studies confirm the high usefulness of the proposed indices.
... Following Chessa et. al. (2017), we consider the Törnqvist (1936) price index, which is given by ...
Scanner data are a quite new data source for statistical agencies and the availability of electronic sales data for the calculation of the Consumer Price Index (CPI) has increased over the past 16 years. Scanner data can be obtained from a wide variety of retailers (supermarkets, home electronics, Internet shops, etc.) and provide information at the level of the barcode, i.e. the Global Trade Item Number (GTIN, formerly known as the EAN code). One of advantages of using scanner data is the fact that they contain complete transaction information, i.e. prices and quantities for every sold item. It means that we may use expenditure shares of items as weights for calculating price indices at the lowest (elementary) level of data aggregation. One of new challenges connected with scanner data is the choice of the index formula which should be able to reduce the chain drift bias and the substitution bias. In this paper, we compare several price index methods for CPI calculations based on scanner data. In particular, we consider bilateral index methods with chained versions of direct weighted and unweighted indices, and also selected multilateral index methods, i.e. the quality adjusted unit value method (QU method) and its special case (the Geary-Khamis method), the augmented Lehr method, the so called "real time index", the GEKS method and the CCDI method. We also propose some price index modifications. We verify the impact of window updating methods and also different weighting schemes in quantity weights on the price index, i.e. we consider alternatively the QU-TS method and the QU-EW method. We compare all these methods using artificial data sets and real scanner data sets obtained from one supermarket and allegro.pl.
... Superlative price indices, firstly proposed by Diewert (1976), are the most 100 (1) STATISTIKA recommended index formulas for the scanner data case (as base formulas). Following Chessa et al. (2017), we consider the Törnqvist (1936) price index, which is given by: In the next part of the paper only the Fisher and the Törnqvist price indices are taken into consideration. ...
Scanner data are a quite new data source for statistical agencies and the availability of electronic sales data for the calculation of the Consumer Price Index (CPI) has increased over the past 16 years. Scanner data can be obtained from a wide variety of retailers (supermarkets, home electronics, Internet shops, etc.) and provide information at the level of the barcode, i.e. the Global Trade Item Number (GTIN, formerly known as the EAN code). One of new challenges connected with scanner data is the choice of the index formula which should be able to reduce the chain drift bias and the substitution bias. In this paper, we compare several price index methods for CPI calculations based on scanner data. In particular, we consider bilateral index methods with chained versions of direct weighted and unweighted indices, and also selected multilateral index methods, i.e. the quality adjusted unit value method (QU method) and its special case (the Geary-Khamis method), the augmented Lehr method, the so called "real time index", the GEKS method and the CCDI method. We consider different weighting schemes in quantity weights on the price index. We compare all these methods using a real scanner data set obtained from one supermarket chain.. The main aim of the paper is to show how big differences among bilateral and multilateral indices may rise while using real scanner data sets. In particular our results lead to the conclusion that the choice of the multilateral formula and the weighting scheme does matter in inflation measurement. It is shown that differences between values of all discussed formulas may exceed several percentage points even in the case of only one homogeneous group of products. 2 INTRODUCTION Scanner data mean transaction data that specify turnover and numbers of items sold by GTIN (barcode, formerly known as the EAN code). Scanner data have numerous advantages compared to traditional survey data collection because such data sets are much bigger than traditional ones and they contain complete transaction information, i.e. information about prices and quantities.
... This package includes 6 functions for calculating multilateral price indices and one additional, general function (QU) which calculates the Quality Adjusted Unit Value index (Table 9). Banajree (1977), Bialek (2012;2013), Davies (1924), Drobisch (1871), Fisher (1922, Geary-Khamis (1958, 1970, Geo-Laspeyres, Geo-Lowe, Geo-Paasche, Geo-Young, Laspeyres (1871), Lehr (1885), Lloyd- Moulton (1975Moulton ( , 1996, Lowe, Marshall-Edgeworth (1887), Paasche (1874), Palgrave (1886), Sato-Vartia (1976), Stuvel (1957), Törnqvist (1936), Vartia (1976), Walsh (1901), Young agmean, banajree, bialek, davies, drobisch, fisher, gearykhamis, geolaspeyres, geolowe, geopaasche, geoyoung, laspeyres, lehr, lloyd_moulton, lowe, marshall_edgeworth, paasche, palgrave, sato_vartia, stuvel, tornqvist, vartia, walsh, young Table 9 Multilateral price indices included in the PriceIndices package ...
... An important contribution to the creation of this theory was made by Laspeyres (1871) and Paasche (1874), whose formulas are still widely used by national statistical offices around the world. Since this theory has received a comprehensive development, and in terms of efficiency evaluation the basis are the works by Fisher (1922) and Törnqvist (1936). A detailed historical description of the index method is given by Diewert and Nakamura (2001). ...
For a bakery, just like for any other business, it is important what business model is applied and how efficient it is. The chapter considers different approaches to understanding business models and their typology. Considering the category of efficiency from an economic and managerial approach, the authors outline the features of individual and relative measurement of efficiency. The chapter describes such relative efficiency methods as productivity indices, corrected least squares (COLS), stochastic frontier analysis (SFA), data envelopment analysis (DEA), and free disposal hull (FDH). In summary, the FDH method has been found to be the most preferred approach for analyzing the efficiency of business models and identifying acceptable benchmarks for improving the efficiency of bakeries.The focus of metric techniques is on econometric analysis and identifying the functional shape of the business’s production function (or a function of costs, or profits). This function is built using regression analysis. The key advantages of non-parametric ways to assessing efficiency over parametric methods is that they do not need specifying the form of the production function (costs, etc.).
... An important contribution to the creation of this theory was made by Laspeyres (1871) and Paasche (1874), whose formulas are still widely used by national statistical offices around the world. Since this theory has received a comprehensive development, and in terms of efficiency evaluation the basis are the works by Fisher (1922) and Törnqvist (1936). A detailed historical description of the index method is given by Diewert and Nakamura (2001). ...
This chapter describes a possible methodology for measuring performance of baking business and consider cases of its application to bakeries from opposite ends of the European continent: Portugal and Ukraine. Considering methods from appropriate literature, a 10-stages methodology for measuring and analysing the performance of bakery business was suggested by the author. The work of the proposed methodology was demonstrated on the example of existing one Portuguese and 25 Ukrainian bakeries according to data for recent years, including 2020, the year of the onset and spread of the COVID-19 pandemic.KeywordsMeasuring performanceBalanced ScorecardData envelopment analysisEfficiency growth potentialBakery
... Correspondingly, Fisher, Paasche, Laspeyres, the input quantity indexes could be described as: Tornqvist (1936), indexes are weighted geometric averages of growth rates for the microeconomic data (price relatives or quantity). These indexes mostly applied by economic literature and national statistical agencies. ...
The purpose of this paper is to determine the impact of e-commerce (EC) on total factor productivity (TFP) of Iranian manufacturing SMEs. The model is based on both econometrics and growth accounting approach to fill the gaps of previous studies. This study model uses two years of panel data and has six EC measurements: number of employees using computer, number of employees using the internet, using the internet to gather and offer information, e-buying, and e-selling. Estimated results show that among EC measures, two are the best, most accurate and reliable measures, namely, e-selling and using the internet to offer information; and with the number of employees using the internet, have positive impacts on TFP indicated by highly significant coefficients of EC. Consequently, SMEs using the internet for selling electronically, using the internet to offer information and the number of employees using the internet have higher TFP on average, and with significant technological progress experienced by SMEs, EC can raise their TFP.
... , , , -price indices proposed by Laspeyres (1871), Paasche (1874), Fisher (1922) and Törnqvist (1936), respectively, for the G-th elementary group, , , , -weight of the i-th subgroup of the G-th elementary group in the base period (February 2021) and in the reference period (March 2021). ...
One of the greatest challenges facing official statistics in the 21st century is the use of alternative sources of data about prices (scanned and scraped data) in the analysis of price dynamics, which also involves selecting the appropriate formula of the price index at the elementary group (5-digit) level. When consumer price indices of goods and services are constructed, a number of subjective decisions are made at different stages, e.g. regarding the choice of data sources and types of indices used for the purpose of estimation. All of these decisions can affect the bias of consumer price indices, i.e. the extent to which they contribute to the overall uncertainty about the resulting index values. By measuring how robust consumer price indices are, one can assess the impact that the decisions made at the different stages of index construction have on the index values. This assessment involves analysing uncertainty and sensitivity. The purpose of the study described in the article was to determine how much and in which direction the consumer price index changes when including scanner and scraped data in the analysis, in addition to the data on prices collected by enumerators. The impact of these new data sources was assessed by analysing uncertainty and sensitivity under the deterministic approach. To the best of the authors' knowledge, it is a novel application of robustness analysis to measure inflation using new data sources. The empirical study was based on data for February and March 2021, while scanner and scraped data about selected categories of food products were obtained from one retail chain operating hundreds of points of sale in Poland and selling products online. It was found that the choice of a data source has the most significant impact on the final value of the index at the elementary group level, while the choice of the aggregation formula used to consolidate different data sources is of secondary importance.
... The calculations based on the Hicksian decomposition can be approximated using two alternative methods [12,14].This article uses the calculations based on the price index of [15] and calculates only the equivalent variation estimation. ...
In this paper, the origin and the significant development of Massive Open Online Education (MOOC) is analyzed. The MOOC-type education has only a brief history, although today it can provide degrees both on bachelor's and master's levels. The opinion of some experts is that MOOC universities belong to the Christensen-type disruptive innovation. This article compares the welfare effects of MOOC universities with that of Gutenberg's book printing. Moreover , in connection with the provision of higher education presents the financing models of the existing MOOC platforms.
... Superlative indices are 'exact' for a flexible aggregator, which is a second-order approximation to an arbitrary production, cost, utility or distance function, and they treat prices and quantities equally across periods. The list of superlative indices can start from the Walsh (1901) and Törnqvist (1936) price indices, which are given by ...
Scanner data can be obtained from a wide variety of retailers (supermarkets, home electronics, Internet shops, etc.) and provide information at the level of the barcode, i.e. the Global Trade Item Number (GTIN, formerly known as the EAN code). After cleaning data and unifying product names, products should be carefully classified (e.g. into the COICOP 5 level or below), matched, filtered, and aggregated. These procedures often require creating new IT or writing custom scripts (R, Python, Mathematica, SAS, others). One of new challenges connected with scanner data is the appropriate choice of the index formula. The article discusses a new R package, i.e. PriceIndices, which is used to process scanner data and to calculate bilateral and multilateral price indices, along with their window extensions. The assumptions for the construction of the package were such that it would serve both practitioners and scientists through a multitude of methods and their parametrization. The main purpose of the article is to present the utility of the package in the field of analyzing the dynamics of scanner prices.
... El índice se basa en la propuesta del estadístico finlandés LeoTörnqvist (1936), que fue retomada por Henri Theil en la década del sesenta(Theil 1965;1968;1973). ...
An analysis of the impact of consumer substitution on the measurement of the cost of living, as applied to Argentina for the period 1960-95, and its implications for measurement of real wages and the purchasing-power-parity exchange rate during the same period. Based on a paper dated 1996, this thorough revision includes also a note on post-1995 developments, including institutional factors that impeded extending the analysis beyond 1995.
... I calculate the willingness-to-pay to avoid climate change productivity impacts as equivalent variation using the nonhomothetic measure of utility. I also quantify the aggregate GDP effects of sectoral productivity changes by using a Törnqvist (1936) price index that uses sectoral expenditure shares from before and after the shock, (X jk0 and X jk1 ), to construct an aggregate price index with which to deflate nominal income: ...
... The non-neutral assumption of technological change could introduce an index number problem on all the proposed measures(Fisher 1922;Törnqvist 1936). However, this problem is resolved by finding the correct scaling parameters of capital and labor(Zuleta 2012; Feder 2018aFeder , 2019. ...
This volume presents selected contributions from the 2018 conference of the International Schumpeter Society (ISS). The selected chapters in this volume reflect the state-of-the-art of Schumpeterian economics dedicated to the three conference topics innovation, catch-up, and sustainability. Innovation is driving catch-up processes and is the condition for a transformation towards higher degrees of sustainability. Therefore, Schumpeterian economics has to play a key role in these most challenging fields of human societies’ development in the 21st century. The three topics are well suited to capture the great variety of issues, which have the potential to shape the scientific discussion in economics and related disciplines in the years to come.
The presented contributions show the broadness and high standard of Schumpeterian analysis. The ideas of dynamics, heterogeneity, novelty, and innovation as well as transformation are the most attractive fields in economics today and offer the most prolific interdisciplinary connections now and for the years to come when humankind, our global society, has to master the transition towards sustainable economic systems by solving the grand challenges and wicked problems with which we are confronted today.
Therefore, the book is a must-read for scholars, researchers, and students, interested in a better understanding of innovation, catch-up, and sustainability, and Schumpeterian economics in general.
... The non-neutral assumption of technological change could introduce an index number problem on all the proposed measures(Fisher 1922;Törnqvist 1936). However, this problem is resolved by finding the correct scaling parameters of capital and labor(Zuleta 2012; Feder 2018aFeder , 2019. ...
It is great to launch these conference proceedings from the ISS 2018 conference held in Seoul, July 2–4, Korea. The theme of the ISS 2018 was “Innovation, Catch-up, and Sustainable Development. Keun Lee, one of the guest editors of this volume, served as the President of the Society (2016–2018) and also as the main host or Chairman of the Organizing Committee, for the Seoul conference. Actually, it took 26 years to return to Asia: the last ISS conference in Asia was held in Kyoto, Japan, in 1992. And it turned out to be a good decision for the International Schumpeter Society to return to Asia: About 380 papers were presented out of the 469 initial submissions from more than 50 nations around the world. Among these 380 presentations, there were about 90 papers presented by young scholars who are either graduate students or new Ph.D. students.
... With the non-neutral assumption of technological change could emerge an index number problem on all the proposed measures(Fisher, 1922;Törnqvist, 1936). However, this problem is solved finding correct scaling parameters of capital and labor(Zuleta, 2012;Feder, 2018b, c). ...
In the catch-up literature, more attention has been paid to the rate rather than the direction of technological change. This paper presents and implements a novel methodology to identify and measure the effects of the direction of technological change in terms of technological congruence and its effects on total factor productivity (TFP). Evolution of the match between technology direction and the idiosyncrasies of its endowments and factor markets is a key factor in country growth. We elaborate its implications for the theory of induced technological change, and apply it to an empirical analysis of Italy’s economic history from 1861 to 2010. The results confirm the important role of the introduction of biased technological change in the assessment of the levels of technological congruence and TFP, and for supporting the long-run convergence of an early-late-comer. N13 N14 O33
... ),valamint Greenwood és Kopecky [2013] tanulmányaiban). Mi az alternatív módszerek közül aTörnqvist (1936) alapján számszerűsített árindex segítségével kidolgozott eljárást alkalmaztuk, és csak egyenértékű verziót számítottunk.A jóléti többlet egyenértékű verziójának Törnqvist módszeréből kiinduló verziója az alábbi képlettel dolgozik: ...
Összefoglaló. Tanulmányunkban a Tömeges Nyitott Online Kurzusok (angolul: Massive Open Online Education, rövidítése MOOC) kialakulásával és óriási méretű növekedésével foglalkozunk. A rövid előzményekkel rendelkező, mai formájában 2011-ben startolt új típusú oktatási forma jelenleg már alapképzéses és mesterképzéses diplomát is ad. Ily módon beszélhetünk MOOC egyetemekről, melyek sok szerző szerint a Christensen-féle romboló újítás megtestesítői a felsőoktatásban. A MOOC népszerűsége egyúttal jelzi, hogy a napjainkban lezajló generációváltás egyben oktástechnikai változással is párosul. Cikkünkben összehasonlítjuk a MOOC egyetemek jóléti hatásait a Gutenberg-féle könyvnyomtatás jóléti hatásaival. A szolgáltatói oldalhoz kapcsolódóan pedig bemutatjuk a MOOC-platformok jelenleg működő finanszírozási modelljeit.
Summary. The study analyses the emergence and huge growth of the Massive Open Online Education. This new type of education which started in 2011 in its current form and so has only a very short history, now offers both bachelor’s and master’s degree. MOOC universities are seen by many authors as the embodiment of Christensen’s destructive innovation. At the same time, the popularity of MOOC indicates that the generational change taking place today is accompanied by a change in educational technology. The present paper compares the welfare effects of MOOC universities with the welfare effects of Gutenberg’s book printing. In connection with the service provider side, the paper presents the financing models of the MOOC platforms as well.
... To discretize the continuous time Divisia index, it is necessary to decide where to measure the share weights within the discrete time interval. Tornqvist [11] proposed using the average of the share at the beginning and the share at the end of the discrete time period. The resulting index is chained, not fixed base, since the average shares move over time. ...
The Barnett critique states that there is an internal inconsistency between the theory that is implied by simple sum monetary aggregation (perfect substitutability among components) and the economic theory that produces the models within which those aggregates are used. That inconsistency causes the appearance of unstable demand and supply for money. The incorrect inference of unstable money demand has caused serious harm to the field of monetary economics.
... Kohli (2008) define e calcula um índice de ganhos de comércio (Trading Gains Index) para a economia americana, no período entre 1970 e 2005, composto pelos efeitos termos de troca e preços relativos. O autor utiliza índices de volume e de preços de Törnqvist (1936). O índice de preços de Törnqvist é a média geométrica dos relativos dos preços, ponderada pela participação média do bem na despesa nos dois períodos, e assim representado: 3 . ...
Os ganhos (ou perdas) reais de renda decorrentes de variações nos termos de troca e nos preços relativos entre bens comerciáveis e não comerciáveis, denominados “ganhos de comércio”, não são contabilizados na variação real do produto interno bruto (PIB). O agregado cuja variação computa esses ganhos é a renda interna bruta real (RIBR), cujo cálculo consta nas recomendações internacionais do System of National Accounts 2008 (SNA, 2008), mas não é realizado para o Brasil pelo Instituto Brasileiro de Geografia e Estatística (IBGE). Neste trabalho, é feita a extensão, aperfeiçoamento e atualização desse cálculo para o período 1948-2018, incluindo a separação entre os efeitos termos de troca e preços relativos, presente na literatura internacional, mas não constante do SNA 2008. A diferença entre RIBR e PIB real (PIBR) é relevante para países com grande abertura comercial e, mesmo para países menos abertos, em períodos de grandes variações nos termos de troca e preços relativos, como ocorre em alguns períodos para o Brasil.
... They state that changes in the productivity of a firm are the product of the change in efficiency and technological innovation over time. There are some alternative indices that can also measure the technical change that is developed by Törnqvist (1936) and Fisher (1922). However, Grifell-Tatje and Lovell (1996) state that MPI is better than other indices due to its properties and other qualities. ...
Abstract
Purpose: We explore how multiple facets of board diversity influence technical efficiency and total factor productivity.
Methodology: We measure board diversity in two dimensions: relation-related dimension (age and gender) and task-related dimension (tenure, education, and expertise). We employ a balanced panel data of 806 non-financial Chinese firms over the period 2009 to 2017. We use a two-stage approach for analysis. In the first stage, we use a non-parametric frontier approach to calculate the technical efficiency and factor productivity scores. In the second stage, we regressed these scores on board diversity attributes (relation-related diversity and task-related diversity).
Findings: By employing Tobit regression and two-step system GMM, we find that board diversity improves technical efficiency and total factor productivity. Our analyses illustrate that a higher diversity on corporate board (in terms of age, gender, tenure, education, and expertise) positively influence firm efficiency.
Implications: Our findings have important implications for policymakers. We suggest that regulators should devise policies to encourage board diversity. Because a diverse board can bring knowledge, skills, abilities, expertise, and experience of diverse group members, which will ultimately enhance a firm’s efficiency. Especially, in the emerging markets (like China), there is still need for standard governance mechanisms, therefore we suggest that policymakers should develop regulations and promote diversity of directors, as one of the factors for improving the governance mechanisms, which will ultimately improve firms productivity.
Originality/Value: Prior studies mostly considered only one dimension (such as gender) of diversity, and therefore have overlooked how other dimensions influence firms. We consider several dimensions of diversity and quantify them into relation-related (age and gender) and task-related (tenure, education, and expertise) attributes, and show how they influence firms’ efficiency. To the best of the authors' knowledge, this is the first study to comprehensively investigate how several facets of diversity influence a firm’s technical efficiency and total factor productivity.
... Caves, Christensen y Diewert en 1982 establecieron la relación entre los índices de Malmquist (1953) y Törnqvist (1936) desarrollando el Índice de Malmquist a partir de dos enfoques: en el primero se analizan las diferencias de productividad como las diferencias en el máximo output alcanzable dado cierto nivel de inputs, conocido como Índice de Malmquist de productividad basado en el output; en el segundo se examinan las diferencias de productividad como las diferencias en el mínimo nivel de inputs que permiten producir ciertos niveles de outputs determinados, conocido como Índice de Malmquist de productividad basado en el input. ...
This paper aims to identify the Malmquist index and technological change of the international freight road transport system in foreign trade, considering the factors that affect the movement of international freight through the DEA model, considering the period 2010 to 2018, thus the aim is to obtain results of global technical efficiency, technical efficiency and scale efficiency. The results show an increase in the total productivity of the factors; however, this increase of the productivity is significantly unequal between the different federative entities.
Financial system is considered an important factor to enhance the productivity growth. Financial development (FD) is closely related with economic process as it leads to higher saving and efficiency. The nexus between FD and economic growth is increasingly well established. This paper measures the effect of development in financial sector on the total factor productivity (TFP) of Indian manufacturing sector for the period of 1998–2017. This study used autoregressive distributed lag co-integration approach and Granger causality test to investigate relationship between the financial development index (FDI) and productivity. The results of the study revealed that there is long-run association between FDI and productivity growth of manufacturing sector in India. The study also investigated that the unidirectional relationship exists between FD and TFP of Indian manufacturing sector from FDI to TFP change.
This study computes Divisia monetary aggregates DM1, DM2, and DM3 for Nigeria using the Tornqvist-Theil quantity index for the period 2007M12 to 2020M12 and evaluates the performance of the higher-order aggregate (DM3) with a corresponding higher aggregate of the simple sum broad money supply (M3). Applying the indicators to money demand function the results showed that DM3 performed better than the matching simple sum measure M3 due to its faster convergence rate. This is because the Divisia aggregates contain additional information in the form of user-costs and spending shares that are not considered in the compilation of the traditional measure, information that may be important for the proper execution of monetary policy. It is therefore, recommended that the Divisia broad money index be used as complement to the simple sum broad money supply for policy decisions.
I show that conventional price index formulas and time‐dummy hedonic regression techniques all consistently estimate growth parameters in the same generalized model of product pricing. I then use that result to make two points. First, the “stochastic approach” is not a helpful tool for choosing price index formulas, because in its complete form it can justify any of them. Second, the literature uses flawed arguments for replacing time‐dummy hedonic regression with hedonic imputation. The time‐dummy method is an excellent, underrated option.
The aim of this study is twofold. First, to identify who benefited from the productivity growth of the American agricultural sector from 1960 to 2004. Second, to measure the relationship between changes in productivity, its distribution, and the evolution of variables linked with climate change. This study shifts the attention from the drivers of productivity change to how it is distributed. Our results show that the stakeholders of the US agricultural sector do not benefit equally from productivity growth. Moreover, it provides empirical evidence that supports the treadmill theory about how technological innovation pushes some farmers out of the market. Concerning the relationship between extreme weather variables (precipitation, temperature, and droughts) and the distribution of productivity change, this depends on the geographical situation of the state. Some stakeholders might be the winners of anomalous climate events in some regions of the US. These findings suggest that reaching a consensus on initiatives to stop climate change will be extremely difficult.
Scanner data from retail outlets has allowed national statistical agencies to construct superlative indexes at the first stage of aggregation. However, if there are strong fluctuations in prices and quantities, chained indexes using scanner data will typically show strong trends which are too large to be credible. To control this chain drift problem, the chapter suggests the use of multilateral index formulae. The chapter compares all of the main multilateral index number formulae both from a theoretical perspective and illustrates the results using a scanner data set on sales of frozen juices for a retail outlet in Chicago. The chapter suggests a new multilateral method that is based on linking observations that have the most similar structure of relative prices and quantities.KeywordsMultilateralSuperlative and similarity linked indexes
Scanner data can be obtained from a wide variety of retailers (supermarkets, home electronics, Internet shops, etc.) and provide information at the level of the barcode, i.e. the Global Trade Item Number or its European version: European Article Number. One of advantages of using scanner data in the Consumer Price Index measurement is the fact that they contain complete transaction information, i.e. prices and quantities for every sold item. One of new challenges connected with scanner data is the choice of the index formula which should be able to reduce the chain drift bias and the substitution bias. Multilateral index methods seem to be the best choice in the case of dynamic scanner data sets. These indices work on a whole time window and are transitive, which is a key property in eliminating the chain drift effect. Following the so-called identity test, however, one may expect that even when only prices return to their original values, the index becomes one. Unfortunately, the commonly used multilateral indices (GEKS, CCDI, GK, TPD, TDH) do not meet the identity test. The paper discusses the proposal of two multilateral indices, the idea of which resembles the GEKS index, but which meet the identity test and most of other tests. In an empirical study, these indices are compared, inter alia, with the SPQ index, which is relatively new and also meets the identity test. Analytical considerations as well as empirical study confirm the high usefulness of the proposed indices.
This research analyses the relationship between efficiency, innovation and seasonality of the Spanish coasts for a five-year period (2015–2019). First of all, the nexus between the level of efficiency and changes in productivity, driven by improvements in innovation and/or efficiency, is determined using Data Envelopment Analysis and the Malmquist Index. Second, this paper proposes a synthetic index to measure seasonality and assess its connection with efficiency and innovation, using a cross efficiency approach to do so. Results show how the intensity of seasonality influences efficiency. In addition, it is observed that innovation can offset possible decreases in efficiency; as such, policies that promote both aspects are needed in the more seasonal destinations.
During the COVID-19 pandemic, second home ownership created several owner benefits. This paper analyses price changes of second homes during the pandemic. It derives propositions for the impact of the pandemic on the value of second homes for its owners. The contribution draws on panel data of transaction prices for second homes from Switzerland, a country with traditionally strong second home ownership, provided by Wüest Partner. The results show that there is a significant price increase for second homes – especially compared to apartments – after the start of the COVID-19 crisis. They also show that prices even in certain second-class destinations have risen significantly during the pandemic. Different research propositions are derived like that buyers might look for less crowded places in the pandemic, and the reduced benefits of intensive infrastructures during a pandemic.
The present study presents a model and estimates Mexico's regional total factor productivity (TFP) that accounts for the economic performance of the country since the 1980's. The findings raise a debate of Mexican productivity over time. One of them is that different measures of output and productivity, leads to different conclusions about productivity at the regional and national level in Mexico. El presente estudio presenta un modelo y las estimaciones de la productividad total factorial (PTF) a nivel regional en México, lo que nos ofrece una explicación del desempeño económico del país desde los años ochenta. Los resultados plantean un debate sobre las medidas de la productividad mexicana en el tiempo. Dependiendo de las diferentes medidas de producción y de productividad, obtendremos diferentes conclusiones acerca de la productividad a nivel regional y nacional en México. Palabras clave: Crecimiento económico regional, Productividad total de los factores, Manufacturas, México, América Latina. Clasificación JEL: D24, L60, O40, O47, R11.
This paper addresses one of the main empirical problems associated with rational addiction theory, namely, that its derived demand equation is not empirically distinguishable from those of models with forward-looking behavior but with time-inconsistent preferences. Using an encompassing general specification of the rational addiction model we derive a microfounded test of time-consistency. The test allows us to distinguish between time-consistent versus time-inconsistent naïve agents. The results obtained from a panel of Russian individuals conform to the theoretical predictions of the rational addiction model and the proposed test for time-consistency does not reject the hypothesis that Russian cigarette consumers are time-consistent.
Charnes, Cooper, Seiford, and Stutz (1982), (1983) and Banker and Maindiratta (1986) suggested multiplicative radial measures for efficiency gauging. More recently, Peyrache and Coelli (2009) presented a multiplicative directional distance function that was elaborated by Mehdiloozad, Sahoo, and Roshdi (2014). In this paper, we extend these studies and propose an exponential approach based upon a new exponential distance function endowed with a multiplicative production structure. The main purposes of this paper are twofold: one is to provide a general production theoretic basis for the approach and the other is to extend it to a nonparametric framework. The first purpose is accomplished as follows: (1) the exponential distance function is formally defined and its properties are established; (2) it is shown how the exponential distance function is characterized under a Napierian technology; (3) a duality relationship between Napierian profit and the exponential distance functions is established; (4) shadow prices of inputs and outputs are derived based on the Napierian technology. The second purpose is accomplished by providing nonparametric programming extensions, which include data envelopment analysis (DEA) models, productivity indexes and returns to scale models. Here, the efficacy of our nonparametric theoretical results is demonstrated by applying DEA to the data on accommodation establishments in OECD.
ResearchGate has not been able to resolve any references for this publication.