Speaker: A/Prof Hideyuki Mozobuchi
Affiliation: Dashisha University
Location: Room S402, Social Science Building (#24)
Abstract:
Recently, the attention to the so-called circularity test for indices has re-emerged and the index that, inter alia, satisfies it was even marketed as a “proper index”, suggesting that other indices are not proper and should not be relied upon. The main purpose of this paper is to unveil and discuss the problems of imposing the circularity property on index numbers, both theoretically and empirically. We also show that the Fisher and Törnqvist indices satisfy a weaker variant of the circularity test, while some “proper indices” violate the circularity test in the axiomatic system of bilateral comparison. The empirical comparison of various indices for measuring changes in output, input, and productivity is also provided to illustrate the problems of circular indices using data on the industry-level production accounts for the US economy during 1947–2014.
About the presenter:
If you would like to meet with A/Prof Mizobuchi, contact Prof Valentin Zelenyuk
About School Seminar Series
The School of Economics General Seminar Series is held on Fridays. These are in-person and presented by a range of guest researchers from around Australia and internationally.