Application of Hedonic Quality Adjustment in Compiling Consumer Price Indices

Traditional consumer price index(CPI) has a quality difference in measuring the effects of price changes,it can not measure the true changes of price exactly.The application of some traditional method,such as direct comparison method,overlap pricing,The production cost method,and linking methods,has condition restriction,and these methods have some shortcoming respectively.On the basis of principle of the mean imputation method,Mean imputation adjusted method can reduce the quality bias of CPI with the average rate change of the other commodity in the same group as the quality adjustment coefficient.Hedonic quality adjustment based on actual data to establish the regression equation,use scientific mathematic means to quantify the degree of quality change,Without relying on subjective judgements,hedonic quality adjustment provides a scientific basis for accurately measuring the CPI.