IndexNumR (version 0.6.0)

CESData: Generate data assuming CES preferences

Description

This function is useful for generating datasets that can be used for testing where the 'true' price index is known. The data are constructed using assumed prices and total expenditure in each period. Expenditure shares and quantities are then computed assuming CES preferences. For further details, see the references.

Usage

CESData(sigma)

Value

a dataframe containing time period, prices, quantities and product identifier.

Arguments

sigma

the elasticity of substitution parameter

References

W.E. Diewert and K.J. Fox (2017), "Substitution Bias in Multilateral Methods for CPI Construction Using Scanner Data", Discussion Paper 17-02, Vancouver School of Economics, The University of British Columbia.

Examples

if (FALSE) {
# generate data assuming the elasticity of substitution is 2
CESData(2)
}