The Research On Using Hedonic Technique In Quality Adjustment Of "Yiwu Index"

At present, price index is applied increasingly widely both in macroeconomics and microeconomics as a basic indicator to reflect the changing of the economic. How to calculate price index accurately, how to let the price index to reflect the actual situation, and how to follow the "homogeneity" principle for the price index, which have now become one of the top academic subject within the international statistics. The current view is that the quality adjustment for the price index is the most important accurate factor of the price index. How to calculate the price index excluding quality changes effectively, which has been concerned by all national statistical agency, statistics and academics but so far has not been solved. People of insight in China also realized the importance of calculating the price index accurately and the exploration of application has already been done for the quality adjustment of the price index on some literature. This paper focuses on the quality adjustment method that is called Hedonic quality adjustment method for price index and more satisfactory as well as accepted, on the basis of summarizing the current foreign and domestic research on the use of the methods for price index quality adjustment. At the same time, some of these ideas on operation were discussed, and this paper put forward their views. Then the Hedonic method was used on the "YiWu Index" for the validation study with some more results in line with the actual, and we found Hedonic method does not only apply for the quality adjustment of durable goods' price index, but also for the price index of the rapidly changing commodity. We hope that this work can provide some constructive lessons and inspiration for the quality adjustment of these domestic price indexes (especially the consumer goods price index).This paper exposit mainly from the following parts:Chapter 1 first introduced the index and the price index as well as its importance, then raised the quality adjustment of price index and the need for the quality adjustment, and finally expounded the need for the quality adjustment on the YiWu Index.Chapter 2 introduced the current foreign and domestic quality adjustment methods of price index and compared their advantages as well as disadvantages, which were common and used in statistical agencies. Also we introduced its assumptions, development process, function form of Hedonic method comprehensively, which is now been more concerned and respected by the current foreign and domestic scholars as well as a lot of statistics and statistical agencies. We summarized the application of the Hedonic method in various practical fields, including both foreign and domestic, such as in the application of real estate price index. Finally in this chapter we pointed out its advantages and disadvantages of the Hedonic method encountered in the actual problems and difficulties, and which areas where improvement is needed.Chapter 3 regarded the price index in the "YiWu Index" system as an example, and briefly introduced the principle and method of preparation of "YiWu Index". On the above-mentioned direct quality adjustment Hedonic method of price index, we proposed measures to improve for Hedonic methods, particularly in the selection of variables, calculation methods, data processing and other aspects of the methods. We did quality adjustment of price index for a certain category of "YiWu Index". Utilization of the results for further improvements, we provide reference for further amendments of "YiWu Index". And for the quality of "YiWu Index", we proposed measures to ensure the smooth progress and data quality.Chapter 4 is mainly a theoretical and empirical studies concluded and the corresponding recommendations and uutlook of this paper.The maybe innovation of this paper: This paper did some innovation in the Hedonic method, on the basis of improved method of Hedonic; apply quality adjustment for the price index in the non-durable consumer goods. Yiwu Small Commodity Market is famous for its clothing, jewelry, and other features. In this paper, we decided to adopt "Nvku"(four category) of the apparel categories for studying. In recent years, with the development of market economy , improving of the production process, and upgrading the apparel products faster, product varieties, specifications and price changes are more obvious in recent years, especially in fabrics and raw materials in which changes are more obvious. Concerning the study of quality adjustment for apparel price index is less, this paper decided to identify clothing as empirical study.