437 – Inflation, Price Indexes, and Labor Statistics
An Alternative Approach to USDA NASS Subcomponent Price Indexes
Kuan Chen
USDA/NASS
Tony Dorn
USDA/NASS
Mark Gorsak
National Agricultural Statistics Service
Daryl Brinkman
USDA/NASS
Jennifer Rhorer
USDA/NASS
Greg Gholson
USDA/NASS
Courtney Charles
USDA/NASS
This paper assesses methodologies to construct elementary price relative estimators used in constructing the United States Department of Agriculture's National Agricultural Statistics Service (USDA NASS) Prices Received Subcomponent Indexes. This paper evaluates alternative index formulas in conjunction with agricultural commodity characteristics which may provide an improved conceptual and empirical methodology for the USDA NASS Prices Received index program than the currently used modified weighted Dutot estimator. The implications of changing to a different price relative estimator are discussed. The price relative estimator comparisons are presented using the axiomatic approach and an empirical analysis. The evaluation of the alternative methodologies is presented using empirical research.