TY  - JOUR
AU  - Diewert,Erwin
AU  - Heravi,Saeed
AU  - Silver,Mick
TI  - Hedonic Imputation versus Time Dummy Hedonic Indexes
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14018
PY  - 2008
Y2  - May 2008
UR  - http://www.nber.org/papers/w14018
L1  - http://www.nber.org/papers/w14018.pdf
N1  - Author contact info:
W. Erwin Diewert
Department of Economics
University of British Columbia
#997-1873 East Mall
Vancouver, BC  V6T 1Z1
CANADA
Tel: 604/822-2544
Fax: 604/822-5915
E-Mail: diewert@econ.ubc.ca

Saeed Heravi
Cardif Business School, Office E30
Colum Drive
Cardif,   CF10-3EU
United Kingdom
E-Mail: HeraviS@cardiff.ac.uk

Saeed Heravi
Cardif Business School, Office E30
Colum Drive
Cardif,   CF10-3EU
United Kingdom
E-Mail: HeraviS@cardiff.ac.uk
M1  - published as W. Erwin Diewert, Saeed Heravi, Mick Silver. "Hedonic Imputation versus Time Dummy Hedonic Indexes," in W. Erwin Diewert, John S. Greenlees and Charles R. Hulten, editors, "Price Index Concepts and Measurement" University of Chicago Press (2009)

M3  - presented at "CRIW and SSHRC: Price Index Concepts & Measurement", June 28-29, 2004
AB  - Statistical offices try to match item models when measuring inflation between two periods. However, for product areas with a high turnover of differentiated models, the use of hedonic indexes is more appropriate since they include the prices and quantities of unmatched new and old models. The two main approaches to hedonic indexes are hedonic imputation (HI) indexes and dummy time hedonic (HD) indexes. This study provides a formal analysis of the difference between the two approaches for alternative implementations of an index that uses weighting that is comparable to the weighting used by the Törnqvist superlative index in standard index number theory. This study shows exactly why the results may differ and discusses the issue of choice between these approaches. An illustrative study for desktop PCs is provided.
ER  -