This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. December 2004
  5. Constructing Price Indexes across Space and Time: The Case of the European Union

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Constructing Price Indexes across Space and Time: The Case of the European Union

  • Robert J. Hill
American Economic Review
vol. 94, no. 5, December 2004
(pp. 1379–1410)
Download Full Text PDF

Abstract

This paper considers the problem of how to construct and reconcile price indexes across space and time. A general taxonomy of panel price index methods, containing four broad classes, is proposed, along with five criteria for discriminating between them. Methods from each of the four classes are then used to compute spatial and temporal price indexes for the 15 countries of the European Union (EU) over the period 1995–2000. Using these panel price indexes, I test whether or not price levels and relative prices converged across the EU over this period.

Citation

Hill, Robert, J. 2004. "Constructing Price Indexes across Space and Time: The Case of the European Union." American Economic Review, 94 (5): 1379–1410. DOI: 10.1257/0002828043052178

Additional Materials

JEL Classification

  • C43 Index Numbers and Aggregation; Leading indicators
  • E31 Price Level; Inflation; Deflation
  • L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices