Subject description
1. Theory of cost of living index.
2. Theory of index numbers in time series.
3. Elementary indices and index aggregation in several stages.
4. Productivity measurement.
5. Decomposition of index numbers.
6. Hedonic indices.
7. Indices in practice and issues of reliability.
8. Construction of composite indicators.
a) pros and cons
b) steps for construction
c) a quality framework for composite indicators
9. Toolbox for constructors.
10. Composite indicators in practice:
a) New Economy indicators
b) key performance indicators
The subject is taught in programs
Objectives and competences
Obtaining knowledge of the index number theory at the advanced level with emphasis on issues, relevant for index numbers compilation in statistical practice; obtaining knowledge of composite indicators.
Teaching and learning methods
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Lectures.
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Seminars.
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Computer labs.
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Consultations.
Expected study results
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Student in-depth understanding of index number theory at the advanced level with emphasis on issues, relevant for index numbers compilation in statistical practice.
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Student ability to carry out research work in the area of index numbers.
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Students ability to construct and interpret composite indicators.
Basic sources and literature
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Balk, B. M. (2012). Price and quantity index numbers: models for measuring aggregate change and difference: Cambridge University Press.
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Diewert, W. E., Balk, B. M., Fox, K. J., Fixler, D., & Nakamura, A. O. (2012). Price and Productivity Measurement: Volume 6 – Index Number Theory: Trafford Publishing.
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ILO (2004), Consumer Price Index Manual, Theory and Practice. Geneva, International Labour Office.
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Diewert, W.E. & Nakamura, A.O. (1993), Essays in index Number Theory, Volume 1. Amsterdam: North-Holland.
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Handbook on Construction Composite Indicators, Methodology and User Guide, (2008), OECD.
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