On the Double Imputation Hedonic Price Index

Abstract

In this short paper we present an empirical comparison of two price indexes: the 'consecutive two period chained time dummy double imputation hedonic price index' recently adopted by the ABS for their computer price index and the 'multi-period dummy variable hedonic price index' that is commonly used in academic research. The comparison is conducted using a publicity available data set and indicates this new index is far more suited to goods like computers where newly introduced models tend to dominate the data set.