I believe this will create a Fisher Price index:
The Fisher Index = Sqrt(Laspeyres' index * Paasche index)
Laspeyres' Index = Sum(Pn*Q0)/Sum(P0*Q0)
and Paasche Index = Sum(Pn*Qn)/Sum(P0*Qn)
where Q0, P0 are the price or quantity in the base period
Pn Qn are the price or quantity in period n
If we just have two goods (a and b) we can construct the Fisher index as
follows:
*generate data
set obs 50
gen Pa = uniform()
gen Pb = uniform()
gen Qb = uniform()
gen Qa= uniform()
*Assume observation 1 is the base period.
gen laspeyres = (Pa*Qa[1] + Pb*Qb[1]) / (Pa[1]*Qa[1] + Pb[1]*Qb[1])
gen paasche = (Pa*Qa + Pb*Qb) / (Pa[1]*Qa + Pb[1]*Qb)
gen fisher = sqrt(las*paa)
This is only for two goods, but it could be generalized....
I hope this helps,
Scott
----- Original Message -----
From: "Alexander Severinsen" <[email protected]>
To: "Statalist" <[email protected]>
Sent: Wednesday, January 08, 2003 5:34 PM
Subject: st: Fisher index - does it exist in Stata?
> Dear listers,
>
> Does anyone know if it is possibel to use the fisher index in Stata for
> constructing a price index?
>
> Thanks in advance.
>
> Regards,
> Alexander Severinsen
> Market Analytics
>
> Jobb direkte: 77 75 61 67
> Mobil: 95 78 34 25
> mailto:[email protected]
>
*
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