Producer Price Index Manual: Theory and Practice ... - METAC

Producer Price Index Manual
Figure 7.3. Flow Chart for Making Decisions on Quality Change
/
YES
Has the specification changed
NO
Continue to use matched models
Has the quality
changed
NO
YES
Expert judgment
Can the quality difference be explicitly
quantified
YES
Is a replacement
available
NO
YES - Use an explicit
Quantity adjustment
adjustment
Production cost
Replacement
No replacement
Replacement
available:
available:
assume all price
assume none of
difference is due
to quality.
price difference
due to quality.
Option costs
Hedonic techniques
Comparable replacement
Are the old and new
varieties available
simultaneously
Overall /targeted/class mean imputation
YES
NO
Carryforward
Overlap pricing
llink to show no change
Source: Chart based on work of Fenella Maitland-Smith and Rachel Bevan, OECD; see also a version in
Triplett (2002).
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