Lecture notes in the Theory and Applications of Economic Indices

EXAM INFORMATION (posted on March 16, 2022):

Your exam in Theory and Applications of Economic Indices has been scheduled for March 28, 2022 at 4:20 pm Moscow time. The exam will be conducted online via ZOOM (see the exam schedule at https://www.hse.ru/ma/statanalys/timetable?fromdate=2022.03.28&todate=2022.04.02&groupoid=86630&receiverType=3&timetable-courses=1&timetable-groups=86630  ).

All students must join the Zoom meeting at exactly 4:20 pm.

In the exam, each student should answer an examination paper (different versions of exam paper will be assigned to different students). The exam papers are randomly assigned to each student. The randomization procedure will be conducted online using Zoom at exactly 4:20 pm (right before the exam). Immediately after the randomization procedure is completed, the exam papers will be sent to your email address at hse.ru. The exam papers will be simultaneously posted on my website (https://macrotrends.ru/theory-of-indices-2022/).

Each student should answer only one exam paper that is assigned to exactly him or her. Please pay particular attention to this point. 

Each exam paper contains two questions. You must use Excel or Word to answer the first question, and you must use Excel to answer the second question.

Maximum grade for each question is 10. The final exam grade is calculated by taking the simple arithmetic mean of your marks for each assessment question.

The time allotted to complete the examination is two hours (120 minutes). If you spend more than two hours to complete the examination, your exam grade will be lowered proportionally to the length of the delay (by 1 per additional 10 minutes).

As soon as you have answered both questions and have finalized your Word and Excel examination files, you must send your file (files) containing your answers to both questions to the following email addresses:  mail@macrotrends.ru  AND  iulyanov@hse.ru  .

The exam ZOOM session will be ended at 7:30 pm Moscow time. Exam file(s) received after 7:30 pm March 28, 2022 will be treated as invalid. That is, if you submit your exam file(s) after 7:30 pm March 28, you are considered to be a student who has not passed the exam.

Your overall grade for the course “The Theory and Applications of Economic Indices” is calculated by taking the arithmetic mean of your 10 week grade (weight 50%) and the final exam grade (weight 50%). 

EXAMINATION PAPERS

Course Syllabus

Lecture 1. DECOMPOSING NOMINAL GROWTH RATES INTO PRICE AND QUANTITY INDEX NUMBERS

Lecture 2-1. AXIOMATIC APPROACH TO INDEX NUMBER THEORY

Lecture 2-2. AXIOMATIC APPROACH TO INDEX NUMBER THEORY, continued

Lecture 2-3. AXIOMATIC APPROACH TO INDEX NUMBER THEORY, continued

Lecture 3. STOCHASTIC APPROACH TO INDEX NUMBER THEORY

Lecture 4. ECONOMIC APPROACH TO INDEX NUMBER THEORY

Lecture 5. PRICE INDICES

Lecture 6. THE MEASUREMENT OF QUALITY-ADJUSTED PRICE CHANGES

Lecture 7. THE INDEX OF INDUSTRIAL PRODUCTION

Lecture 8. CHAIN INDICES

Resources and materials used in seminars

Test #1. According to the version of the test assigned to each student, calculate chain indices using the chain-linking method, or vice versa – convert the series of chained index numbers into an unchained series.

Exercise 1-1

Exercise 1-2

Exercise 1-3

Exercise 1-4

Test #2. According to the version of the test assigned to each student, calculate index number series, and verify numerically whether the resulting index numbers satisfy one or other of tests for index numbers. Here is the data required to calculate index numbers.

Exercise 2-1

Exercise 2-2

Exercise 2-3

Factor reversal test: explanation

Example test

Test #3. According to the version of the test assigned to each student, calculate the Sato – Vartia consumer price index representing all goods and services purchased for consumption. Here is the data required to calculate index numbers.

Out-of-class group assignment. The class will be divided into 5 teams of approximately 4 students each. For a set of products to be chosen by each team members, students should identify objectively measured characteristics of each product, prices of each product, and construct the regression equation relating the prices and characteristics. To access assignment instructions click here. Follow this link to open an Excel file with exemplary data.