Publication Type
Working Paper
Version
publishedVersion
Publication Date
3-2011
Abstract
We propose a method to decompose the logarithmic change of the Divisia price index into the pure price effect, the preference effect and the substitution effect. Our empirical results in the Philippines shows the effects of preference change on the Divisia price index are heterogeneous but positive across all regions and income deciles. However, they are dominated by the pure price effect.
Keywords
Divisia price index, preference change, decomposition, Philippines
Discipline
Asian Studies | Macroeconomics
Research Areas
Macroeconomics
First Page
1
Last Page
12
Publisher
SMU Economics and Statistics Working Paper Series, No. 06-2011
City or Country
Singapore
Citation
FUJII, Tomoki.
Decomposing the Changes of the Divisia Price Index: Application to Inflation in the Philippines. (2011). 1-12.
Available at: https://ink.library.smu.edu.sg/soe_research/1263
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Comments
Published in Economic Bulletin https://ink.library.smu.edu.sg/soe_research/1518