Price Variance

ECON 308 : Econometrics

Assignment 1. Sources of price variance (Goods # 99~105)

1. Plotting the price data

[pic]

[pic]

[pic]

[pic]

[pic]

[pic][pic]

2. Calculation Result (Variation Decomposition of prices)

|Good ( i ) |Total ( Vi ) |Cross-sectional (Ti) |Time-series (Fi) |

|99 |Underwear |0.0910 |0.0659 |0.0251 |

| |(girls) | | | |

|100 |Dress |0.0543 |0.0233 |0.0310 |

| |(girls) | | | |

|101 |Shirt |0.1741 |0.1320 |0.0421 |

| |(babies) | | | |

|102 |Suit |0.0984 |0.0731 |0.0253 |

| |(babies) | | | |

|103 |Shoes, leather |0.0465 |0.0326 |0.0139 |

| |(mens) | | | |

|104 |Shoes, sneakers |0.0218 |0.0163...