Percentiles of an Inflation Index by Quantile Regression

Date

2006-06

Authors

Blankmeyer, Eric

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Publisher

Texas State University-San Marcos

Abstract

This paper gives a methodology for estimating an inflation index using the quantile regression of Bassett and Koenker. The regression, which is orthogonal in the logarithmic price changes, is computed by linear programming for each percentile of inflation. The procedure is applied to monthly data on 25 raw materials.

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Keywords

inflation, price index, quantile regression

Citation

Blankmeyer, E. (2006). Percentiles of an inflation index by quantile regression. Texas State University-San Marcos, Texas.

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