Zahid, Asghar and Frahat, Tahira (2010): Measuring inflation through stochastic approach to index numbers.

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Abstract
This study attempts to estimate the rate of inflation in Pakistan by a stochastic approach to index numbers which provides not only point estimate but also confidence interval for inflation estimate. There are two approaches to index number theory namely: the functional economic approach and the stochastic approach. The attraction of stochastic approach is that it estimates the rate of inflation in which uncertainty and statistical ideas play a major roll of screening index numbers. We have used extended stochastic approach to index numbers for measuring the Pakistan inflation by allowing for the systematic changes in the relative prices. We use CPI data covering the period July 2001March 2008.
Item Type:  MPRA Paper 

Original Title:  Measuring inflation through stochastic approach to index numbers 
Language:  English 
Keywords:  Stochastic Approach, Index numbers, Inflation,OLS 
Subjects:  E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E31  Price Level ; Inflation ; Deflation 
Item ID:  21513 
Depositing User:  Zahid Asghar 
Date Deposited:  22. Mar 2010 23:10 
Last Modified:  30. Dec 2015 10:06 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/21513 