Economic Review, Vol. 52 No. 11-12, 2001.
Review article
TREATING OF DIFFERENCES AND QUALITY CHANGE IN PRICE INDEX CALCULATION
Draženka Čizmić
Abstract
The problem of qualitative adjustment appears when product the price of which is taken in price index calculation is replaced with another, and it is necessary to decide which part of price difference among them should be exposed in index as the price change. Defining of qualitative change and index adjustment for this change is perhaps the most difficult part in formation of price index. The most important techniques for measurement of qualitative changes are: prices of options, hedonistic approach, measurement of qualitative changes from data on “picking” prices, measurement based on changes in production costs, measurement based on consumer evaluation of characteristics of products, uniting and consideration of statisticians. Since in the Republic of Croatia qualitative adjustment is not implemented in price index calculation, there are shown procedures of qualitative adjustment in particular countries-members of the European Union, as well as the process of harmonization of qualitative adjustment in European Union. Since not taking into account qualitative changes in price index calculation is considered as one of their most important shortages, in the future should be surely introduced some methods of qualitative adjustments, those which are most adequate to our conditions and possibilities.
Keywords
Hrčak ID:
28788
URI
Publication date:
20.12.2001.
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