gekslm {PriceIndices} | R Documentation |
Calculating the multilateral GEKS-LM price index
Description
This function returns a value of the multilateral GEKS-LM price index (to be more precise: the GEKS index based on the Lloyd-Moulton price index).
Usage
gekslm(data, start, end, sigma = 0.7, wstart = start, window = 13)
Arguments
data |
The user's data frame with information about sold products. It must contain columns: |
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". |
sigma |
The elasticity of substitution (a parameter used in the Lloyd-Moulton index formula). |
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 multilateral GEKS-LM price index (to be more precise: the GEKS index based on the Lloyd-Moulton 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). 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
Gini, C. (1931). On the Circular Test of Index Numbers. Metron 9:9, 3-24.
Elteto, O., and Koves, P. (1964). On a Problem of Index Number Computation Relating to International Comparisons. Statisztikai Szemle 42, 507-518.
Szulc, B. (1983). Linking Price Index Numbers. In: Price Level Measurement, W. E. Diewert and C. Montmarquette (eds.), 537-566.
Lloyd, P. J. (1975). Substitution Effects and Biases in Nontrue Price Indices. The American Economic Review, 65, 301-313.
Moulton, B. R. (1996). Constant Elasticity Cost-of-Living Index in Share-Relative Form. Washington DC: U. S. Bureau of Labor Statistics, mimeograph
Examples
gekslm(milk, start="2019-01", end="2019-08",window=10)
gekslm(milk, start="2018-12", end="2019-12", sigma=0.5)