trends in the use of centralised pricing data sources for price indexes
DESCRIPTION
? CPI Administrative Data Use of administrative data for a Consumer Price Index (CPI) Difficult or impossible to observeTRANSCRIPT
Trends in the use of centralised pricing data
sources for price indexes
# prices costs
EfficiencyCPICPI
Administrative Data
Use of administrative data for a Consumer Price Index (CPI)
e.g. supermarket scanner data
?CPICPI
Administrative Data
Use of administrative data for a Consumer Price Index (CPI)
Difficult or impossible to observe
Consumption
Uni
t Pric
e
Average consumption
Water prices
Water prices
Administrative Data
Administrative data
•Deposit and Loan facilities•Child Care•Hospital and Medical Services•Property Rates•Future Directions
Deposit and loan facilities
Direct feesInterest rate margins
01
23
45
67
89
J F M A M J J A S O N D
Interest rate onloansInterest rate ondeposits
Deposit and loan facilities
Interest rate margins
01
23
45
67
89
J F M A M J J A S O N D
Interest rate onloansInterest rate ondeposits
•Average interest rates are not directly observable
Deposit and loan facilities
Direct fees
•Types of accounts, account balances and patterns of transactions•Bundling•Not directly observable
Hypothetical user profiles ?
Sample of accounts approach
Credit Debit Balance
Starting Balance $5,000.00
Deposit $200.00 $5,200.00
ATM withdrawal $50.00 $5,150.00
ATM withdrawal fee $1.00 $5,149.00
Cheque deposit $25.00 $5,174.00
Final balance $5,174.00
Deposit and loan facilities
Direct fees
Average balance
•A year’s worth of transactions•Range of bank’s popular products
Balance Interest
Deposit accounts 100000000 250000Everyday account 10000000 170
Savings account 50000000 17000
Retirement accounts 20000000 80000
Loan accounts 200000000 1700000Home loans 120000000 900000
Credit cards 23000000 190000
Personal loans 45000000 450000
Sample of accounts approach
Deposit and loan facilities
For % interest marginsbalance and interest • by product• for deposits and loans
0
1
2
3
4
5
6
7
8
9
J F M A M J J A S O N D
Interest rate payable on loans
0
1
2
3
4
5
6
7
8
9
J F M A M J J A S O N D
Reference rate
Interest rate payable on deposits
Deposit and loan facilities
Sample of accounts approach
Product interest rate
Sample of accounts approach - indexation
Credit Debit Balance
Starting Balance $5,000.00
Deposit $200.00 $5,200.00
ATM withdrawal $50.00 $5,150.00
ATM withdrawal fee $1.00 $5,149.00
Cheque deposit $25.00 $5,174.00
Final balance $5,174.00
Deposit and loan facilities
Sample of accounts approach - indexation
Credit Debit Balance
Starting Balance $5,025.00
Deposit $201.00 $5,226.00
ATM withdrawal $50.26 $5,175.75
ATM withdrawal fee $1.50 $5,174.25
Cheque deposit $25.13 $5,199.38
Final balance $5,199.38
Deposit and loan facilities
Update direct fees
Credit Debit Balance
Starting Balance $5,000.00
Deposit $200.00 $5,200.00
ATM withdrawal $50.00 $5,150.00
ATM withdrawal fee $1.00 $5,149.00
Cheque deposit $25.00 $5,174.00
Final balance $5,174.00
Credit Debit Balance
Starting Balance $5,025.00
Deposit $201.00 $5,226.00
ATM withdrawal $50.26 $5,175.75
ATM withdrawal fee $1.50 $5,174.25
Cheque deposit $25.13 $5,199.38
Final balance $5,199.38
Period 1
Period 2
Deposit and loan facilities
Determine prices in period 1 and 2 and thereby determine price movements
Deposit and loan facilities
Monitor data quality
Maintain excellent relationship with provider
Refresh sample of accounts regularly
Computing system
Child care benefit
$0.00
$0.50$1.00
$1.50
$2.00
$2.50$3.00
$3.50
$4.00
Income
Ben
efit
per h
our
One childTwo childrenThree children
Full-time/part-time ?
Child care
Child care centre/private home ?
Fraction of remainingcosts
© 2005 FOX BROADCASTING CR:FOX *
# children
Usage
$
Location
Child care
*http://tvcomedies.about.com/od/thesimpsons/ig/The-Simpsons-Photo-Gallery/The-Simpsons-Family.htm 9/10/2008
Survey ?
Expensive
Small sample
Administrative data ?
Free
Large sample
Child care
Maintain relationships
System to process data© 2005 FOX BROADCASTING CR:FOX *
*http://tvcomedies.about.com/od/thesimpsons/ig/The-Simpsons-Photo-Gallery/The-Simpsons-Family.htm 9/10/2008
Medical Services
Summary Data
Obtain prices from medical practitioners
Apply summary data to calculate subsidiesNot fit for our purposes
Medical procedure
Number of consultations
Fees paidBenefits paid
Medical Services
Administrative Data
20% 30% 50%Period 1
22% 33% 45%Period 2
18% 27% 40%Period 3 15%
33% 42% 0%Period 4 25%
Medical Services
prices
x 1000
Small cities !
Medical Services
Administrative Data
Address Land value Rates
Property Rates
Based on land values
Sample of accounts
Future Directions