utpd: Calculating the unweighted multilateral TPD price index

In PriceIndices: Calculating Bilateral and Multilateral Price Indexes

Calculating the unweighted multilateral TPD price index

Description

This function returns a value of the unweighted multilateral TPD (Time Product Dummy) price index.

Usage

utpd(data, start, end, wstart = start, window = 13)

Arguments

data	The user's data frame with information about sold products. It must contain columns: time (as Date in format: year-month-day,e.g. '2020-12-01'), prices (as positive numeric), quantities (as positive numeric) and prodID (as numeric, factor or character).
start	The base period (as character) limited to the year and month, e.g. "2020-03".
end	The research period (as character) limited to the year and month, e.g. "2020-04".
wstart	The beginning of the time interval (which is used by multilateral methods) limited to the year and month, e.g. "2020-01".
window	The length of the time window (as positive integer: typically multilateral methods are based on the 13-month time window).

Value

This function returns a value of the unweighted multilateral TPD price index which considers the time window defined by wstart and window parameters. It measures the price dynamics by comparing period end to period start (both start and end must be inside the considered time window). Please note, that the estimation procedure runs the Ordinary Least Squares (OLS) method instead of the Weighted Least Squares (WLS) method like in the case of the TPD index. To get information about both price index values and corresponding dates, please see functions: price_indices or final_index. The function does not take into account aggregating over outlets or product subgroups (to consider these types of aggregating, please use the final_index function).

References

de Haan, J. and F. Krsinich (2014). Time Dummy Hedonic and Quality-Adjusted Unit Value Indexes: Do They Really Differ? Paper presented at the Society for Economic Measurement Conference, 18-20 August 2014, Chicago, U.S.

Examples

utpd(milk, start="2019-01", end="2019-08",window=10)
utpd(milk, start="2018-12", end="2019-12")

PriceIndices documentation built on July 9, 2023, 6:20 p.m.