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User Guide for PPI System - United Nations Economic Commission

1. Click here to save the updates 01520 Manufacture of dairy products Update Cancel DRAFT DOCUMENTATION 80 August 2009 For example existing industry weight for D1514 Manufacture of vegetable animal oils is 2 560 267 which was the summation of all establishments that belong to it When a new industry weight is available the user can enter into New Wt column which will then be automatically redistributed to all the establishments below based on existing share Pre compilation Preview ce Index Compilation Model Main Manu Options Window Help Utilities 7 Preview Data erly Compile Time Series Report International Monetary Fund Frice Index Processor Version 1 Producer Price Index 1 0 31 DB 1 Click Report Preview Data button at toolbar to preview the data before compilation The user can select Weight Reference Date Base Period Current Period DRAFT DOCUMENTATION 81 August 2009 Collect Compilation Information Imputation Period Compilation Method Elementary Formula Preview Weight Ref Date TEWIE By Industry Laspeyres Compile Base Pernod t0 By Establishment Geometric Laspeyres Download Current Period 03 2002 By Product Detect Dutliers Previous Period By Location Chained Index pees Total 84 records loaded EstID Level Code Descript
2. Producer Price Index Compilation Model Main Manu Utilities Window Help elal sel Report Options Pre Compile Data Check Data Status Indicator Detection of Outliers Cross Est Price Comparison Frice Index Processor Version 1 Producer Price Index 1 0 30 DB 1 The user will see following screen Create Spreadsheet for Average Price Average Formula Please Select Start Period and Number of Period Anthmetic Mean Chart Period 921 22002 Geometric Mean Average Method Humber of Pernod Average by Product m Decimal Point The user can select one of average methods by choosing either arithmetic mean or geometric mean to be used in calculation The user should also select Start Period Number of Period and Decimal Point he would like to have in the report Following report shows the arithmetic average price for different varieties across the establishments in the country for 3 periods DRAFT DOCUMENTATION 74 August 2009 8 Producer Price Index Compilation Model Edit Reveiw Weights File Edit Insert Format Tools Help peal SIR 21 2 Arial 10 B z u e 100 Ds 1800 D E G H 1 Arithmatic Average of Price 2 Est SN ISIC Code Region Description 7 1 2002 6 1 2002 9 1 2002 3 4 E4020 central 1202 14 2 kg cylinder 670 E4100 central 18003 Inousehol
3. O t Y Pig 25 6 Ypg 0 1 1 D D 9 gt wie PP 240 2 DD Where are price updated weights given by DRAFT DOCUMENTATION 21 August 2009 10 w A Since the user is responsible for entering the weights they can enter price updated weights or weights without price updating as in 9 and 8 respectively The Geometric Laspeyres or Young Indices Aggregation can be either arithmetic as above or geometric The geometric version of the modified Laspeyres index a weighted geometric average is taken of the price relatives using the output revenue shares of period O as weights It is defined as N p we ee lI p D Similarly the geometric version of the Young Index if period b 7 0 that is the output revenue shares are different from price reference period O N p Ww EC lI D D Users should note that period b weights should not be price updated to period 0 if using the Geometric formula i e a geometric Young may be used but not Geometric Lowe The user chooses between these formulas by the type of weights inputted Geo Young if not updated and Geo Lowe if updated Further whether the index is a Geometric Laspeyres or Geometric Young depends on whether the user enters weights for period O or a preceding period b and whether the index is an arithmetic Laspeyres or Young or Lowe depends on whether the user
4. Vegetables Ghee ee Soyabean 01 E 1 LTR PALICH 4818 4818 4818 Pouch of 1 LTR 400 40 00 2185e 1 2 LTR PAUCH uel od 7 Retrieve Cancel Time Series Report Indices in time series format one index by multiple periods each column indicates a period can be generated Details of such report are shown in following screen Time series presentation will give the user one index at a time for the multiple periods The user can select metadata columns whether they would like to have metadata appear in their report Time series report can be readily exported to an Excel spreadsheet DRAFT DOCUMENTATION 85 August 2009 2 Producer Price Index Compilation Model Time Series Report Generator 5 gt File Edit Data Ukilties Report Options Window Help I LIE Contents Methodology Elementary Formula f PPI Index Industry Laspeyres C STER Establishment Preview Updated weight By Product Export Meta Data Include oes E Print iw Industru Region Cade Penodocity Export Format Digit Lesel Start Date 72002 Excel HTML Cancel C XML iw Product Code m Ma of Period lw Description 3 f PDF Time Senes Report 3 X 322 records ID ISIC Level Code Desc 07 2002 08 2002 0972002 Bl 01514 5 2169 Vegetables Ghee 93 95 100 00 99 60 B18 01514 5 2165 Soyabean 100 00 111 36 104 35
5. 01514 2165F 1 LTA 10 PALICH BAG 100 33 100 33 107 00 21 01514 2165e 1 2 LTA PAUCH 100 36 99 70 98 34 bz 01514 2169h Cartoon af 16 packets each 1 Ltrs 100 00 100 00 100 00 23 01514 5 2165 Soyabean 01 100 00 100 16 106 67 24 01514 5 2169 Vegetables Ghee 104 08 113 81 100 00 625 D1514 5 2165 MUSTARD OIL 100 78 102 07 102 44 0152 3 Manufacture of dairy products 100 00 100 00 100 00 01520 4 Manufacture of dairy products 100 00 100 00 100 00 B26 01520 2211 Crate of 20 packets each 1 2 Ltrs 100 00 100 00 100 00 01520 2211c HOLL MILE 100 00 100 00 100 00 28 01520 2295c Packet of 200 Gram as 1 pau 100 00 100 00 100 00 629 D1520 22114 Packet of 1 2 Ltrs PACK 100 00 100 00 100 00 B30 01520 2211 MILK 100 00 100 00 100 00 63 01520 2211F Pauch of 1 2 Ltrs 100 00 100 00 100 00 2 4 TIT amp DRAFT DOCUMENTATION 86 August 2009 Suggested References e Producer Price Index Manual Theory and Practice 2004 nternational Monetary Fund http www imf org external np sta tegppi e CPC Version 1 1 Detailed Structure and Explanatory Notes http unstats un org unsd cr registry regcst asp Cl 16 e CPA Detailed Structure and Explanatory Notes http europa eu int comm eurostat ramon cpa 2002 cpa 2002 en html e ISIC Version 3 1 Detailed Structure and Explanatory Notes http unstats un org unsd cr registry regcst asp Cl 17 amp Lg 1 DRAFT DOCUMENTATION 87 August 2009 Add New
6. amp 98 xn Current Period 07 2002 User ID 0402 Print Previous Period 06 2002 Computer GZHUDS Export to Excel Base Period 06 2002 Show Report at Save to HTML Report run at E 4 2004 10 24 17 E Save to Cancel Total 992 records ISIC Digit Code Description STPR Updated Ww PPI 1 Agriculture hunting and forestry 89 74 39 74 39 74 2 Agriculture hunting and related service activities 33 4 99 4 99 4 A011 3 Growing of crops market gardening horticulture 89 74 39 74 39 74 A0112 4 Growing of vegetables horticultural specialties and 89 74 39 74 39 74 A0112 8 01120 Maize corn 99 24 99 74 99 24 A0112 b 1 Maize corn 83 74 83 74 83 74 A0112 011206 Maize corm 83 74 99 74 83 74 D 1 hanufacturing 99 4 98 54 99 4 015 2 Manufacture of food products and beverages 101 53 20 62 101 53 0151 3 Production processing and preservation of meat fish fi 107 49 4 48 107 49 D 1514 4 Manufacture of vegetable and animal oils and fats 101 43 4 48 101 43 01514 2165 Soyabean 98 43 0 00 98 43 01514 b 26 Tin of 13 1 3 99 22 0 00 99 22 01514 26 Pouch of 1 LTA 99 7b 0 00 99 7b 01514 21659 Vegetables Ghee 103 87 0 00 The system generates three sets of results 1 Short Term Price Relatives which is the index of producer prices from last period to current period 2 PPI which is also Long Term Price Index indica
7. for price X entnyupdate edit A Search by Industry Search Alphabetically Search by District List All Establishment Establishment Information total 364 records Est Mame alc Code District ANNAPURNA VEGETABLE PRODUCTS PYT LTO 01514 BARA NARAYAN VEGETABLE INDUSTEIES PYT LTD 01514 SUNSARI NEPAL VANASPAT GHEE 01514 hA AKNVSVANELB VABASPA TT UDYOG 01514 KA TAHMAN DL SHREE SWASTIK OIL IND PT 01514 MORAN G MIDAL OIL INDUSTRIES 01514 BARA SHREE SAURABHA MILL 01514 SHAKTI GHEE Ubro PYT LTD 11514 BARA SHREE REFINE OIL PRODUCT PYT LTD 01514 MORANG SUSHIL WAMASPATI P T LTO 01514 FARSA Select All Close lt Click the Open Excel File link or the Excel icon the user will see the following Excel spreadsheet DRAFT DOCUMENTATION 61 August 2009 54 Microsoft Excel x00001 3 xls File Edit Insert Format Tools Data RoboPDF Window Help D REPE Gary Be 2121 io Ir Arial 10 B ZU 5 5 tQ ey YAS 3 Vane ster sheet button to Database O sont T location and name Al E J L 1 Save Back to PI Database Database Path and Name C Program SystemsDatasWepal mdb 2 Est SN Est ID Est Name IsProd Code Description Unit Share Weight 06 2002 07 2002 08 2002 3 B15
8. s to x s will contain approximately 68 of the measurements the interval from x 2s to x 2s will contain approximately 95 of the measurements and the interval from x 35 to x 35 will contain approximately all of the measurements In the case of price relatives we do not know the underlying distribution of data set Many studies of price change show that price relatives are not normally distributed Thus we appeal to Chebyshev s theorem which applies to all possible distributions According to Chebyshev s theorem for any set of measurements and any number k21 the interval from x s to x s will contain at least 1 1 k2 100 percent of the measurements Thus at least 88 8 percent of all the observations in a data set will have z score less than in absolute value i e fall into the interval x 3s x 35 and at least 75 percent will fall within 2 standard deviations where xis the mean and s is the standard deviation of the sample Therefore the observations with z score greater than 3 will be potential outliers Example The short term price relatives measured by dividing current period prices by previous period prices are recorded in following table DRAFT DOCUMENTATION 26 August 2009 oa 105 1 107 1 Sample Data for Short Term Price Relatives For this data set x 103 1333 s 5 4818 3s 16 4454 z score of the observation of 121 is 121 103 1333 5 4818 3 2593 z score of 85 is 85 103 1333
9. amp e a 2501 01520 KATHMAND DLIGDHA PADARTHA e e e 3500 01520 MAKWANPL HETALIDA DUGDHA BITRAN AY e mae e 3373 01520 LALITPUR HIMALAYAN DAIRY PRODUCTS e e e 3484 01520 KATHMAND KATHMANDU BITRAN e e e 823 01520 KASKI POKHARA DLIGDHA BITRAN d e 2 FEA m nian moe RIF ASH The user will have a graphic view of the data status Green dots indicate that data are available yellow dots indicate that data are partially available and red dots indicates that data are not available Select the Establishment right click click the Edit Price button e Edit Establishment Edit Praduck Edit Price Edit Nokes Refresh DRAFT DOCUMENTATION 76 August 2009 The user will be given the price edit screen from there the user can find the missing prices If the user clicks the Edit Establishment the user will be able to edit establishment information This feature provides the user with quick access to the data to resolve the data missing problem Different icons represent different establishment status For example represents Initiated and reported amp represents Refuse to participate gt represents Out of business represents Could not locate represents Not get initiated 2 represents Resending for initiation and No relevant product The user can change the base period and current period by clicking the Change button To exami
10. 2000 or above c CPU Pentium 600 MHz or higher d 512 MB RAM or more 60 MB free disk space DRAFT DOCUMENTATION 31 August 2009 f VGA True Color video mode displays at 800 x 600 or 1024 x 768 pixels The installation package on the PPI distribution CD Rom includes all necessary files including ActiveX components Installation Procedures Insert the Price Index Processor CD ROM in the CD drive The user will see following screen Price Index Processor CPI PPI Compiler ni pra prop Manuals 004 x PIPS was using standard Microsoft tools available to all users and only requires that users have licensed versions of Office Suite The system has been tested on various data sets such as tho app nearing inter 19 af the CPI and PPI pu computational Click either Install CPI Software or Install PPI Software button to trigger installation process Click CPI User Manual or PPI User Manual to read the manual in PDF format DRAFT DOCUMENTATION 32 August 2009 E Welcome Welcome to Producer Price Indes Compilation System Setup program This program will install Producer Price Index Compilation System on your computer It is strongly recommended that you exit all Windows programs before running this Setup Program Click Cancel ta quit Setup and clase any programs you have running Click Nest to continue with the Se
11. 43 Add New Product and Variety 54 Add Product 55 Average Price 73 74 Average Prices 14 Base Period Weight 6 Basics 36 Batch Price Data Input 59 Box Plots Method 27 Chained Index 82 83 Chebyshev s theorem 7 26 Compilation Method 14 CPA 5 6 14 31 37 57 87 CPC 5 6 14 31 37 57 87 CPls 19 21 Create Excel Sheet 59 Cross Price Comparison 71 Data Check 75 77 Data Diagnosis 14 Data Status Indicator 14 75 Distribute Weights 79 elementary formula 37 Elementary Formulae 14 Enter Update Price 62 65 71 Error Checks 14 Estimate Base Price 67 Geometric Laspeyres 14 Global Impute Weights 79 How the Quartile is Calculated 27 imputation method 37 Impute Missing Indices 24 index compilation 8 75 Index Compilation 82 Input Price 59 Installation Procedures 32 DRAFT DOCUMENTATION 88 international price comparison 12 ISIC 6 13 31 48 87 Laspeyres 14 17 18 19 20 21 22 Log normal Method 28 Long Term Price Relatives See LTPR Manual 5 87 matched observations 7 23 24 Methodology 16 82 missing prices 8 14 19 modified approach 6 modified Laspeyres formula 6 outlet 13 outliers 7 25 26 27 28 PPI 5 Preview Data 81 price index 21 23 24 Price Index Processor i 5 Price Quotations 12 price relatives 7 8 15 19 20 21 22 25 Producer Price Index Manual 5 Reset Weight 79 Sample Rotation 79 Short Term Price Rel
12. DOCUMENTATION 37 August 2009 Producer Price Index Compilation Model Configure PPI Working Space File Edit Data Utilities Report Options Window Help sig Ey x 3 Configure Working Environment Defalt PP Compilation Country Rwanda Defalt Database File Location C Program FilesXPPI System DATA Default PPI Database eg ppi mdb Rwanda PPI mdb m Create New PPI Database e g Set it as Default newppi mdb Change the weight date 2002 to 2002 Default Product Classification System CPA CPC User Defined System Message Manage Product Classification Repair Compact DE PPI default working space haz been reset Excel Data Transfer Set Compilation Date Default Impute Method Elementary Formular C By Industry Laspeyres By Establishment f Geometric Laspeyres By Product ie f By Location 5 Hefresh Cancel 3 25 2005 3 21 AM Click the Manage Product Classification button to invoke the import and export industry product classification system Click the Repair Compact DB button to repair possible database errors and compact Access database Click the Excel Data Transfer button to generate an Excel template to populate the PPI database from an Excel spreadsheet Click the Set Compilation Date button to specify the compilation date DRAFT DOCUMENTATION 38 August 2009 lmpart Export Product lndustry Cl
13. Division are responsible for any errors of omission or commission in this documentation DRAFT DOCUMENTATION ii August 2009 Table of Contents 7 9 10 ESTABLISHMENT PRODUCT AND TRANSACTION 11 PRODUCT AND TRANSACTION 11 MULTIPLE WAYS OF ENTERING THE PRICE QUOTATIONS 12 GLOBAL RECALCULATION OF ESTABLISHMENT PRODUCT AND TRANSACTION WBEIGELLDS 13 INDUSTRY CLASSIFICATION AND PRODUCT CLASSIFICATION 13 DATA DIAGNOSIS AND ERROR CHECKS 14 DATA STATUS INDICATOR 14 CALCULATING 14 COMPILATION METHOD siscccsscecrccorsncoronevesnswswnnsesntessnonexconsstessienssseensssebancieaereanivosuvesses 14 15 THE STANDARD LASPEYRES TYPE 18 THE MODIFIED OR TWO STAGE LASPEYRES 19 THE YOUNG LOWE INDICES 21 THE GEOMETRIC LASPEYRES OR 1222 1 22 MATCHED PRICE OBSERVATIONS 23 IMPUTE MISSING INDICE
14. Enter the prices in relevant cells The user can enter edit prices for 3 months Note that once in editing mode the background color will turn yellow The user can change the date by clicking the date cell in the first row DRAFT DOCUMENTATION 63 August 2009 8 1 2002 07 2002 0872002 2002 I goo 600 2 3 4 5 6 7 8 9 10 1l 12 13 14 15 600 B 17 18 19 20 21 22 23 24 25 26 2f 28 23 31 1 2 3 4 5 3 Today 771872005 Alternatively the user can set the PPI compilation date the date in these columns will be reset accordingly corresponding to the base period current period and previous period S7 Set Date for PPI System Ehoose PPI Compilation Date PPI Compilation Base Period E 2002 PPI Compilation Current Period 08 2004 PPI Compilation Previous Period Cancel The user can retrieve historical price data by clicking the Retrieve button To change the date the user can click date cell The price figures shown in red indicate that they are imputed values If the user exits the price editing form without saving the revised data she will see following message DRAFT DOCUMENTATION 64 August 2009 Sl Price Input Establishment ID 1 Establishment M ame ANNAPURNA VEGETABLE PRODUCTS PVT LTD Set Compilation Date Products Transactions Vegetables Ghee ee er 212165 Tin of 13 123 KG 590 20 53
15. ID18 ANNAPURNA VEGETAL TRUE 2165 Soyabean Oil 0 5 153267 9 4 615 1018 ANNAPURNA FALSE 2164a Tin af 13 1 3 KG 0 59 91341 5 5 615 1018 ANNAPURNA FALSE 21656 Pouch of 1 LTR POUCH 0 4 61926 44 b 615 018 ANNAPURNA TRUE 2169 Vegetables Ghee JAR 0 5 153267 9 7 615 ID18 ANNAPURNA VEGETAL FALSE 2169 Jar of 15 KG JAR 0 57 60325 87 615 ID18 ANNAPURNA VEGETAL FALSE 21696 Tin of 15 Ig 0 57 92939 07 617 340 VANASPATI GE TRUE 2165 Soyabean Oil JAR 0 24 4131 855 617 340 VANASPATI FALSE 21650 15 LTR JAR JAR 0 6 3672 76 11 617 340 MEPAL SANASPATI FALSE 21652 1 2 LTR PAUCH PALICH 0 1 459 0949 12 617 340 GR TRUE 2169 Vegetables Ghee JAR 0 71 127223 4 13 B17 24 VANASPATI GE FALSE 2169b Tin of 15 Kg 0 3 4314 142 14 617 340 NEPAL VANASPAT FALSE 2169c Jar contained 15 LTRs JAR 0 45 6471 213 15 617 240 NEPAL VANASPATI FALSE 216924 1 LTR PAUCH 0 1 1438 047 16 17 Click here to sawe Only those yellow 18 back to PPI DB cells can editted 19 This worksheet is protected except for the yellow area which is the area where the user can input price information It is important to note that this is a pre designed spreadsheet with a specific table format for price updating purposes Some cell information is for technical purposes and the table structure can t be change at the user s di
16. Preview C D E Prin Btable format You can add rows at the end af the worksheet Click Save 1 Est Hame ISIC Code Description Exit 1511 Production processing and pr RODZ BCK 1511 Production processing and pr RUS SHEMAFRUITS 1513 Processing and preserving af 1 F DA CONFIGI Contig Internationa amp Coop 1513 Processing and preserving af 1 RUS APROJUFUGI 1513 Frocessing and preserving of 1 RODG SOPROMARU IBENGEZA 1513 Processing and preserving of 1 URWIBLUTSO 1513 Processing and preserving af 1 RUOS 1513 Processing and preserving of 1 RUOY IN ANGE DAIRY 1520 Manufacture of dairy products RUIU NYABISINDU DAIRY Laiterie du Rwe 1520 Manufacture of dairy products R011 RUBIRIZI DARY 1520 Manufacture of dairy products R012 SOTIRU S A 1521 Manufacture of grain mill prod Mii wk abe Est ID Coding Batch Edit Upload Select From ISIC are required fields 16074 ee F PI v ill TP Click the Select From ISIC _ Select From ISIC button to select an industry You can search for particular industry by type in some key words in description field or first few digits in the ISIC code DRAFT DOCUMENTATION 48 August 2009 115 g x a Producer Price Index Compilation Model Select an Industry File Edit Data Utilities Report Options Window Help eig Ey x es o 211051 emm ones ie Search for an industry from ISIC Key words Searc
17. aggregation will be a Laspeyres type or geometric Laspeyres type throughout the index Missing price indices will be imputed which in turn are used to estimate the missing prices The compilation results are stored in the database in time series format DRAFT DOCUMENTATION 14 August 2009 Tabulation and Reporting The System generates both ad hoc and time series reports in a tabular format Short term price relatives STPR long term price relatives PPI indices and updated cost weights are the three key indices produced by the System It reports the most detailed indices for all components The user can choose report detail at different aggregation levels from level 1 to level 8 The reports can be exported to Microsoft Excel spreadsheets HTML for web publication and other formats DRAFT DOCUMENTATION 15 August 2009 Methodology DRAFT DOCUMENTATION 16 August 2009 Many countries use the standard Laspeyres type arithmetic mean of price relatives to compile their consumer price indices Although the term Laspeyres is often used to describe the formula three points should be noted First Laspeyres requires that the weights reference period is the same as the price reference period which is generally not the case Weights may be from some prior survey period say 2008 it taking some time to compile the weights for use with a price reference period of say January 2010 As noted below the resulting index may more f
18. enters weights for period 0 or a preceding period b or price updated weights from b to 0 The software uses the terminology Laspeyres of Laspeyres type leaving it to the user to define the exact nature of the formula by virtue of the weights used Laspeyres type formulas are generally used by countries at the higher level and geometric means at the lower level In spite of this the geometric Laspeyres type index has some advantages Geometric means are i not as sensitive as arithmetic means to the extreme values ii are DRAFT DOCUMENTATION 22 August 2009 circular i e fulfill a multi period transitivity property that the product of the price index change going from a period 1 to a period 2 times the price index change going from period 2 to a period 3 should equal the price index going directly from period 1 to 3 and iii are more likely to lie between the Laspeyres and Paasche bounds a desirable property Matched Price Observations An average price is calculated in each of the geographical areas covered and for each variety comprising the PPI basket The system allows a different number of areas and variety structure The calculation of average prices would be simple if a set of price quotations were available for the current and previous month In reality this does not always happen Quite often some of the respondents are unable to quote a price for a particular variety because it is out of stock Whenever a particular
19. for transactions and product indicating their relative importance within an establishment Each establishment is associated with a list of properties including contact information for both establishment and data collector The user can create a meta data for keeping notes information for the establishment The user can easily add edit and delete an establishment One can also input edit the establishments information in a spreadsheet and upload to the database at one time The System also keeps tracking the establishment status and sample group information The establishment status indicates the current standing of the establishment as in one of following situations 1 refuse to participate 2 out of business 3 could not locate 5 initiated and reported 6 resending for initiation 8 no relevant product 9 not yet initiated and 7 unknown Each establishment is classified into one of two sample groups either certainty selected or probability selected group The user can quickly find a specific establishment by using the search feature An establishment can be searched by its ID name keyword area it is located or alphabetically Product and Transaction Structure The System allows the user to create a list of products for each establishment by selecting from a standard product classification scheme ISIC which is displayed in a hierarchical tree view structure The user can not only search for a particular product b
20. into either Certainty Group or Probability Group Within Certainty Group the weight distribution is based on the establishment status whereas in Probability Group each establishment will obtain equal weight Calculating Adjusted Weights Please refer to Chapter 3 Methodology for the formulae of calculating the adjusted weights Reset Update Sample Rotation The weights are key elements in the construction of an index number Because some products have greater production or sales than others each product is given a weight to represent its importance in total output or sales during the reference base period for the weights The relative importance of such products keeps changing over the time so weights have to be updated constantly The system allows the user to undertake weights reset or update by clicking Utilities Weight Update button DRAFT DOCUMENTATION 79 August 2009 Producer Price Index Compilation Model Main Manu File Edit Data BENIN Report Window Help agi LN Create Excel Far Update Ctrl F Import Export Classification Swstem Review Coding System Options Global Inpute Sayve Weights Weight Update Excel Data Transfer Repair and Compact PPI Database 1 DH 1 Once the user decides to update the weight which will usually happen when new industry weight data become available this procedure will distribute the industry weights to the establishments that have been defined
21. previous period s price multiplied by the current period s price relative of that item The PPI System is a Visual Basic application that runs in the Microsoft Windows environment It works with Windows 2000 Windows Server 2003 Windows XP and Windows Vista operation system The System stores both cross sectional e g establishments products and varieties information and time series data e g price quotations and price indices in database The System three database environment Microsoft Access Microsoft SQL server and Microsoft SQL Express formerly known as MSDE The design makes use of a relational database architecture and object technology In the PPI System several objects are generated representing establishment product transaction and imputation Each PPI System object contains an unique object name with its properties attributes and methods DRAFT DOCUMENTATION August 2009 Depending the situation the PPI System engine creates links between the database where information is stored and an Excel spreadsheet where information can be inputted edited and reported Almost all data can be entered through either a Windows form screen or an Excel spreadsheet Using Excel data can be uploaded in batch mode The PPI System brings together the flexibility and user friend interface of Excel with a powerful statistical and index compilation tool DRAFT DOCUMENTATION 8 August 2009 The PPI System Architect
22. the quantities of the products in question respectively The ratio p po 1 the price relative to the base period for item sometimes called the long term price relative By expressing the output share for the item as a ratio of the total output during the base period as qo po 3 wv a 2 4 p i i Using the preceding expression formula 2 can be written in a slightly different form as DRAFT DOCUMENTATION 18 August 2009 N DI 5 il Di However these versions of the Laspeyres formula do not provide the flexibility required for economies that are going through significant and rapid changes The Modified or Two stage Laspeyres Approach There are several reasons why the Modified Laspeyres Approach is superior to the standard formula First in the standard formula we are comparing price relatives for the current period to the base period In practice the editing of the current period s price data is done by comparing the prices for the collection period for an item with those charged for the same item in the previous period Any large variations falling outside a predetermined range checks e g 0 8000 to 1 1000 might indicate either the wrong item has been priced or some kind of error has been made in recording the price With formula 4 this comparison cannot easily be made as it uses for each item the price relatives of current period to the price reference period second the stan
23. to belong to it The distribution of weights is based on existing shares of these establishments Weights distribution will trigger a recalculation procedure in which adjusted establishment weights will be re imputed and product transaction weight re calculated based the previously defined or calculated share Producer Price Index Compilation Model Update Establishment Weight Using Industry Census Data F3 File Edit Data Report Options Window Help Baala leel Establishment Weights Update Please Input a new industry weight in New WI column IE will then be auto Weight Date Ga 22002 redistribed ISIC Code ISIC Description Weight New Wt Est ID Status Est Name Share Weight D Manufacturing 104865 01514 Manufacture of vegetable and animal oils 2560267 105 1 3 TEXTILES 5 SHAKTI GHEE 5 NARAYAN VEGETABLE II 9 VAMASPATI GHEE 100 00 10 13 6 13 0 55 10 255 3387 2 SHREE SwASTIK OIL IND 969 5 NIDHI OIL INDUSTRIES 10 75 5 SHREE SAURABHA OIL 1018 5 ANNAPURNA VEGETABL 10 30 1744 5 SHREE REFINE OIL 7 355 1147 5 SUSHIL vVANASPATI B 58x INDUSTRY 10 75 1138121 823 5 POKHARA DUGDHA BITF 0 00 Existing weight for 01514 will be updated by newly obtained industry weight data and will be distributed to the est underneath
24. 0 100 00 This index will be used in the estimation of base period price eflatar 100 81 100 93 100 36 100 00 Ltrs each The base period price will be estimated as showed below 08 2002 Preview Export Cancel 03 2002 A 100 00 100 00 100 81 101 53 33 23 100 00 106 67 102 85 102 85 100 91 100 97 101 43 102 18 99 20 38 83 100 00 100 00 101 66 100 93 Edit and Input Price Data Establishment Name Establishment SW Product Code B 77 1 ea 0 471 PIN L1 L 1 ames Click Save button to save the estimated base price DRAFT DOCUMENTATION 70 VEBETABLE PRODUCTS LTD 2169 of 15 KG 4 4 845 2 83 2 21 20 79 0 00 6 25 0 98 nore Print EN Help ae Cancel August 2009 It is important to note that the system is using the price and compiled index of a user selected period as a proxy in estimating the base price Therefore the index for the selected period must be ready before the base price can be estimated The formula used is pretty straightforward t where P is the base price is the price in t period and is the index in t period Method 4 Enter Update Price for Multiple Establishments and for single Transaction The user can also enter or edit prices for multiple establis
25. 1120 Maize corn 0112 01120 Maize com imputed value because 0112 011206 Maize com OLMMUSSIBAPDCES D 1 hanufacturing 015 2 Manufacture of food products and beverages D 151 3 Production processing and preservation of meat fish fi 107 49 4 48 107 49 D 1514 4 Manufacture of vegetable and animal oils and fats 101 43 4 48 101 43 01514 2165 Soyabean 98 43 0 00 98 43 01514 b 26 Tin of 13 1 3 99 22 0 00 99 22 01514 26 Pouch of 1 LTA 99 7b 0 00 99 7b 01514 21659 Vegetables Ghee 103 87 0 00 M Missing price indices were imputed by taking the indices from its parent group If parent group indices were missing it has to go one level up again until it finds the value Imputed indices were indicated in red color When the indices were saved to the database missing price were automatically imputed and stored in the database with flag It will show in price edit screen in red color as well Current period missing price is imputed by multiplying the last period price by STPR of that transaction If last period price is missing then the price will take the product of base period and PPI index DRAFT DOCUMENTATION 84 August 2009 2 Producer Price Index Compilation Model Price Input File Edit Data Utilities Report Options Window Help Er xc 803 Establishment ID 4 Establishment N ame NIR WAN UDYOG Products Transactions
26. 20 packets each 1 2 Ltrs 2211 1 2 MILK 2211 MILE a The user can click the grey button to edit the price for transaction 2169a The user will be given the following screen to select a specific year PP Choose a Calendar Year for Price Comparison Transaction Code 2169 Transaction Description 15 KGs TIH Select A Calendar Year for Price Comparison Cancel DRAFT DOCUMENTATION 2 August 2009 Select year and then hit the OK button If no data are available the user will see this message box Otherwise the user will see 85 Producer Price Index Compilation Model Cross Outlet Price Comparison i Edit Data Utilities Report Options Window Help Sg gu Ey x 81 Hel Trans Code 2169 Calendar Year 2002 Save Description 15 TIN Cancel esit ENTE IRE Apr 2002 Jun 2002 amp ug 2002 es nne mop s na EN gs EN i May 2002 ne B 624 na NE NEE FFE The user can change or input the price here and hit the Save button Generate Average Price for Transactions DRAFT DOCUMENTATION 73 August 2009 The system can generate a report for average price for all the varieties across the establishments The user can click Data Generate Average Price button as showed below
27. 2002 Unflag Price 117122002 Deflate Price 127 1 2002 1 1 2003 DRAFT DOCUMENTATION 66 August 2009 At this screen The user can a add an observation at the end of time series b can also insert one between two observations c remove delete an observation d estimate base period price using another series as a proxy deflate the base period price At this screen the user can also define an outlier threshold value which is expressed in percentage term If the percentage increase exceeds this threshold value the font color of the percentage change will be showed in red Please note that if the price is in red this indicates that this value is estimated value during the imputation Producer Price Index Compilation Model Edit and Input Price Data File Edit Data Utilities Report Options Window Help x 1 Insert Remove Estimate Base Price 62172002 253 25 1 e vm 3 2 2 s warzone e e wexp qm e 6258 0 CT a ri 12 52172003 780 00 4 0 00 Print increase compare to the previous period Click the Estimate Base Price button to use another index series as the deflator If there is an observation that it is earlier than or same
28. 5 00 500 00 p Pice data has been changed Do you want bo save before exit wo Retrieve Refresh H Cancel Click Yes to save the information click No to ignore the changes click Cancel to cancel the exit and continue to edit the price Method 3 Enter Update Price in Time Series Format The user can enter edit price data for one specific transaction for multiple periods in time series format Click icon right to the transaction code Product Code E 2169 Vegetables Ghee m 1E8h 2165 gil O ri etg J The user will be given following screen for price entry and editing DRAFT DOCUMENTATION 65 August 2009 men poc EE Price 6 1 2002 563 25 anmwe tal wi ol s s Em A A LR IR IR Nl lM NM e lal e la ala b mmi d ME Insert pom pe Delete Refresh 1 Estimate Base Price Print Help Cancel dii Select the specific price observation right click the user will see following menu ni 57172002 7 1 2002 m Insert Delete 9 1 2002 _ Flag Price 10 1
29. 5 4818 3 3079 Since the absolute values of z score of 121 and 85 are more than 3 the price relatives 121 and the 85 are outliers in the data set The Z score method is biased by the problem that both the mean and standard deviation are affected by the outliers Box Plots Method Another procedure for detecting outliers is to construct box plots of the price relatives data They make no distributional assumptions and since they rely on the median and quartiles as parameters the method of detection is not influenced by the outliers themselves Below are the steps implemented in constructing the box plots for the software e he median M lower and upper quartiles QL and QU and the inter quartile range IQR QU QL are calculated for the data set e Two sets of limits on the box plot are constructed inner fences are located a distance of below QL and above QU outer fences are located a distance of below QL and above QU Observations that fall between the inner and outer fences are called suspect outliers Locate the suspect outliers on the box plot using asterisks Observations that fall outside the outer fences are called highly suspect outliers How the Quartile is Calculated Quartile calculation depends on the percentiles definition The First quartile is the 25 percentile noted Q1 the Median value is the 50 percentile noted Median and the Third quartile is the 75 percentile noted Q3 The method to calcula
30. File Location and the file name OF Select the file name and click Open button Look Local Disk C Program Files tbIICPSPD xls 9 Sheridan 58 weightsData xls My Recent DELL O SouceSafe_DB Documents Giom E Source Documents and Settings Tidestone DRIVERS lad WBcodes Desktop _ewsdata vs GFS Installation WebPraj 1386 WINDOWS IMFCDROM asdf xls Inetpub amp amp ISIC xds Select file name and Mission Data 88 MyCade xls click Open button My Music 9 PPIClass xls Computer amp File name PPIClass xls _ pen Network Files of type Excel format 518 Cancel Places Open as read only Click OK button again DRAFT DOCUMENTATION 40 August 2009 2 Choose the Worksheet to import This Workbook comprises following worksheets which one has product classification data Classification Import Cancel User Defined Product Classification Import Rules 1 Worksheet should only contains 3 columns in following order Code Digit and Description 2 Please download CEA CPC classfication an example of defining the Digit 3 Previous User Defined product Classification information will be everwritten Select worksheet and click the Import button To import the modified ISIC table into the system the user can click the Import Classificati
31. List All Establishments Search by Last Column Establishment Information total 14 records right click for editting Establishment Name sk Note SIC Code District VEGETABLE PRODUCTS PVT LTD 01514 NARAYAN VEGETABLE INDUSTEIES P T LTD EN SUNSARI Edit Establishment NEPAL YANASPATI GHEE EEEE MAKWANPUR NIRWAN VANASPATI UDYOG mre KATHMANDU SHREE SWASTIK OIL IND PVT LTD KATHMANDU NIDHI DIL INDUSTRIES nes BARA SAURABHA OIL MILL Refresh BANKE SHI SHAKTI GHEE UDYOG PVT LTD SHREE REFINE OIL PRODUCT PVT LTD Delete Establishment ae Sm dm Edit Add New Delete Refresh Cancel To add product or transaction information the user has to select an establishment first single click to which the product or transaction is going to be added Click the Edit Product button or click the Product button on the establishment edit screen as showed below DRAFT DOCUMENTATION 54 August 2009 Data Collector Info H ame Becker Phone 999 999 9999 E mail Click this button to edit product ker nowhere com Hotes N Refresh Cancel Product gt The following screen will allow the user to input product and transaction information 5 Products amp Transactions PESE Establishment Weight Establishment ID Establishment HARAYAM VEGETABLE INDUSTEIES
32. P T LTD Weight Reference Date 06 2002 Establishment Assigned Weight 2 5324 Establishment Adjusted Weight 391446 01 Products Transactions Protest Code 7 roduci Description T Share Lim Jar of 15 KG m Add Product Add Trans Delete Save Refresh Cancel Price Input gt Click the Add Product to add a product A blank row will be added for the user to input product information DRAFT DOCUMENTATION 55 August 2009 The user add the establishment weight at this stage If the establishment status is the previously selected probability one then an adjusted weight will be calculated However the user is cautioned to only use the adjustment procedure if they are satisfied with the outcome on trial data Adjustments to weights can be made outside of the software and revised weights entered as assigned ones As noted in earlier sections an important assumption behind the use of the software is that weighting information is available from establishments the weight reference period at the most detailed level that is for a product specification within an establishment Weights should be input by the user at all levels Price updated weights should only be used with arithmetic aggregation Products amp Transactions Establishment Weight Establishment ID i Help Establishment ANNAPURNA D Weight Refe
33. Producer Price Index PPI Compilation System User Guide Price Index Processor Version II Producer Price Index Revised Version E Un gt Un S 4 B z Q aw C S 3 x 9 S DOCUMENTATION 1 August 2009 Acknowledgements and disclaimer The IMF Statistics Department STA and the Technology and General Services Department TGS developed the Price Index Processor Software PIPS to assist countries in improving their capabilities to process collected price observations and use them to compile price indices Acknowledgements are due to Gangti Zhu for developing the software and Paul Armknecht as advisor on index number issues The IMF has authorized UNECE Statistical Division with whom the IMF has no other affiliation to distribute modify and maintain the software While the IMF retains ownership rights to the original software the IMF assumes no responsibility to users for support or maintenance and has disclaimed all liability for any errors that may exist in the software and for any other claims relating to the software This user guide is no more than a guide and the user is strongly advised to become very familiar with the software using a set of trial data preferably from their own country before adopting the software for use It is for the user to decide on the basis of such a trial whether the software suits their needs Neither the IMF nor UNECE Statistical
34. RI BIT NARAYAN VEGETABLE INDLISTEIES PYT LTD NEPAL VANASPATI GHEE Cancel VAN ASPAT UY OG SHREE SwASTIK OIL IND PVT LTD MIDHI OIL INDUSTRIES SALIRABHA OIL MILL SHAKTI GHEE UDYOG SHREE REFINE OIL PRODUCT PVT ETD Click the Auto Generate button to create Establishment ID using exiting coding structure Enter the establishment name and other required fields indicated with Click the Help button or icon if help is needed DRAFT DOCUMENTATION 43 August 2009 Establishment 1 Create Establishment Establishment ID 1 3 E Isblichment Names Enter an Establishment name here Batch Edit Upload ISIC Code Select From ISIC ISIC Description Region Compilable required fields Establishment Information Establishment Status Initiated and reported Sample Group 1 Certainty Establishment Group Establishment Contact Information Data Collector Info _ Address 1 Fhine Address 2 Postal Cod Email City Province 5 Country Dsuit o Moes Hew Save Cancel Establishment is unique field If the establishment is already taken the following message will be displayed This establishment ID is already in use please choose another ID Click the Establishment Status dropdown list to define the establishment status the default value is Initiated and Rep
35. RY ADHUNIK DAIRY PRODUCT PYT LTD BIRATHAGAR DUGDHA BITRAM ATOJANA Edit Motes Delete Establishment DRAFT DOCUMENTATION 52 August 2009 Grey color indicates that the establishment status is not active Click the Edit Establishment button to invoke editing screen Establishment 7 Create Establishment Establishment ID 2 Est ID Coding Estsblishmant Names INARAYAN VEGETABLE IHDUSTEIES LTD Batch Edit Upload ISIC Code 01514 Select From ISIC ISIC Description Manufacture of vegetable and animal oils and fats Region Compilable SUNSARI are required fields Establishment Information Establishment Status Initiated and reported Sample Group 1 Certainty Establishment Group amp j Establishment Contact Information Data Collector Info Phone 40257 Becker Address 1 Fax Phone Address 2 999 999 9999 Cit Postal Cod Email ity Becker nowhere com Province DUHARI Country District SUNSARI Nepal Hew Delete Refresh Cancel Product gt DRAFT DOCUMENTATION 53 August 2009 Add New Product and Transaction Detail and Weights Click the Edit button on the Main Menu screen 29 Search for Establishment Seles Search for Establishment Search by Establishment ID Show Last Column By Cw District Region Eompilable Search by Industry Province Data Collector Search Alphabetically
36. S amp PRICES tirni n ar 24 DETECTION OP OUTLIERS soeren a 25 19 255255 28 DASIC INFORMATION 31 PACKAGE CONTENTI S 31 SYSTEM REQUIREMENTS ENARE ERRETEN 31 INSTALLATION PROCEDURES iiri o n NN 32 SYSIEM CONFIGURATION 36 ADD NEW ESTABLISHMENT ENS 43 EDIT ESTABLISHMENT PRODUCT OR 50 ADD NEW PRODUCT AND TRANSACTION DETAIL AND WEIGHTS 54 INPUTPRICE 59 GENERATE AVERAGE PRICE FOR 685 1 73 DATA STATUS INDICATOR AND PRE COMPILE DATA 75 RECALCU LATION OP WEIGHTS ORE HD Tu oa Rho Ra 78 PRE COMPTLA TION PREY DEW 81 INDEX 82 TIME SERIES REPOR MEIN MM 85 DRAFT DOCUMENTATION iii August 2009 Price Index Processor Version Producer Price Index System PPI gt System is application software developed for assisting IMF gt member countries compiling their PPIs The system can also be used for teaching training and research purposes Its main function is to compile PPI fo
37. a memo field in the database which is approximately 24 pages of MS Word document After adding a note the user could save it to PPI database or save it externally for the future reference Click here to E Edit Add save to PPI 5 meo Open an external Save to PPI Database text file awe as Exit Click here to save as text file Select a specific establishment by clicking once on the particular row right click once to invoke an editing Menu It is important to note that you can change an establishment ID provided that the ID is not taken It the user wants to create a new establishment using an ID that already exists she can either delete that ID first or hit the save button three times In that way the existing establishment information in the database will be overwritten by the information newly inputted The user can edit establishment product or price information by clicking the appropriate button The user can also edit the notes clone duplicate an establishment or delete an establishment Establishment Information total 15 records right click editting Establishment Name VEGETABLE PRODUCTS PYT LTD NARATAN VEGETABLE NEPAL VANASPATI GHE NIRWAN VAMASPATI UD Price SHREE SWASTIF OIL IN HIDHI OIL INDUSTRIES SAURABHA OIL MILL Refresh SHAKTI GHEE UD clone Establishment SHREE REFINE SUSHIL VANHASPATI YUATA INDUST
38. ablishment information DRAFT DOCUMENTATION 50 August 2009 Jj Search for Establishment Search for Establishment Search by Establishment ID cst t District Search by Key Words Region Compilable Province Data Collector Search by Industry Search Alphabetically f Search by Last Column Establishment Name sk Note SIC Code District VEGETABLE PRODUCTS PVT LTD 01514 NARAYAN VEGETABLE INDUSTEIES PVT LTD 01514 SUNSARI NEPAL VANASPATI GHEE 01514 UDYOG E 01514 KATHMANDU SHREE SWASTIF OIL IND PYT LTD NIDHI OIL INDUSTRIES E BARA SAURABHA OIL MILL HERUM BANKE SHI SHAKTI GHEE UDYOG PVT LTD establishments SHREE REFINE OIL PRODUCT PYT LFE BANKE Add Hew Delete Refresh Cancel Double click the specific fixed heading row for re sorting the field in ascending or descending order Those establishments showed in grey color are inactive The user can add notes to an establishment by double clicking JJ icon in Est Notes column icon indicates that there is a note associated with this establishment S Editing Notes for Establishment ROO Sel Edit Add 3 25 2005 1 48 47 PH This note is to explain _ DRAFT DOCUMENTATION 51 August 2009 It is important to note that metadata text length should not exceed 65 353 characters
39. al dimensions of product transaction information which reflect its own unique production pattern Each transaction list has a parent which Is listed in the standard CPA or CPC product classification In this way the system maintains a international standard while provides each country with flexibility of creating additional dimensions of transactions with its unique characteristics 35 Choose or Create a Transaction Parent Code Generate Trans Code Parent Code a 69 Add Hew Code Description a uli Delete Code Select a Transaction Click icon button to select 2169 Jar of 15 KG Tin of 15 Kg Tin of 15 LTR 5 Jar of 15 LTR 5 Pouch of 1 LTR It is important to note that one transaction specification can be used by multiple establishments if one particular transaction is already used by another establishment it can not be deleted from database until it is released from that establishment The user should look at the transaction list carefully to decide whether an existing transaction code should be used or a new transaction should be created entered click the small grey button at right side of the first column to select a transaction once a transaction is selected the Choose or Add Transaction screen will disappear and the transaction information will show in the product screen The DRAFT DOCUMENTATION 58 August 2009 user has to click the Save button to stor
40. always calculated as geometric mean changes imputations are based on geometric means Missing prices of one or some varieties then are estimated by multiplying the previous period s price by the current period s short term price relative of that variety which in turn was estimated using the index of the item group If the DRAFT DOCUMENTATION 24 August 2009 previous period s price is not available the missing price will be estimated by multiplying the reference base period price by the LTPRs If both previous period price and base period price are not available missing price will can not be imputed If no price is collected for any variety covered by a product the prices for whole product is missing Its price relatives will be imputed using average price relatives from the item group of the missing price Detection of Outliers What is an outlier An observation that is unusually large or small relative to the other values in a price relatives data set is called an outlier Outliers are the observations that appear to be inconsistent with the remainder of the collected data There are several possible sources for outliers 1 The price quotation of a transaction or variety is observed recorded or entered into the computer incorrectly 2 The price quotation come from a different population or quality of that transaction variety has been changed 3 The price quotation entered is correct but represents a rare event or no
41. arket gardening Cereals Wheat and meslin Wheat and meslin Maize corn Maize com Rice nat husked Rice nat husked Husked Husked Barley Barley Aye oats Aye oats Other cereals Other cereals Vegetables A E 3 4 5 4 a 4 a 4 p 4 a 4 p 4 a 3 122922004 2 27 PM Double click the product the user wants to select the product code with description will be extracted and displayed as a product selection screen Product weights can be added at this stage The user then can add transaction to this product by clicking the Add Add T button Transaction Click the 1 button to add a transaction from a transaction list A transaction list is a user defined list which extends the international standard product classification defined by CPA or CPC The transaction list comprises many transaction items Each transaction item can have an user definable unique code and description such as package type serving number of units in package size of unit unit of measure origin seasonal availability product characteristics etc The transaction code is typically concatenated by its parent product code combined with additional one or two alphabetical letter The DRAFT DOCUMENTATION 5 August 2009 system will generate this code when the user press the Add New Code button and the user can change this code if she wants to The transaction list allows each country to maintain addition
42. as the base period the following message will appear DRAFT DOCUMENTATION 67 August 2009 o Obs ate Price 1 E 6 1 2002 563 25 ed mumw n Refresh Estimate Base Price Print Help First Observation date 6 1 2002 is earlier or same as than base date 61 1 2002 PO 79 Cancel The estimation cannot proceed You have to delete the earlier observations 0 00 6 25 0 985 Delete this value if necessary by selecting the first column the relevant row right click and click the Delete button in the pop up menu as shown below Flag Price Price lorfzidoro delete DeFlate Price R 1271727007 Click the Estimate Base Price again Then the user has to select the month on which the price will be deflated by using a calculated index In the case showed below the user selected 6 1 2003 price to be deflated DRAFT DOCUMENTATION 68 August 2009 Establishment IL 1 Add New Establishment VEGETABLE PRODUCTS PYT LTD Insert eee 2169 of 15 KG Delete Obs Dae P ce Change Retesh 1 7 1 2002 5 2 88 ea mm o Eas e E3 Print You are about bo deflate using 6 1 2003 price and a value of 780 estimating price of base period of 6 2002 Please select a index From next screen that will be used as deflator in estamation
43. assification System orion tl terested oberg aed ISIC Code Import Classification T able into the Database CPA CPC 77 User Defined OF Cancel This form is to provide the user with a feature to export and import the industry and product classification system The user first selects whether she wants to export or import the product classification system Then she will have to select the product classification system she will be working on and click the OK button The selected system will be exported to the Excel spreadsheet The user then can modify the classification system by adding or deleting items It is important to note that the user must keep the existing hierarchical structure of industry and product classification scheme in order to be able to import it back to the database The user has to save the specific Excel spreadsheet as Excel file To import the revised the classification system back to the database the user first selects the Import Classification Table into the Database radio button Then selects either ISIC or User Defined product code clicks the Browse button to select the Excel File that needs to be imported and then clicks the OK button DRAFT DOCUMENTATION 39 August 2009 Import_Export Product Industry Classification System ABE C Export Classification Table to Excel ISIC Code Import Classification Table into the Database C CPA x C ligi ta sp User Defined Excel
44. ata Status Indicator Pre compile Data Check Data Status Indicator is a graphical feature provided to help the compiler to examine the data availability and status before undertaking the index compilation The user has to determine the compilation period by selecting in the following screen w Set Date for PPI System Choose PPI Compilation Date PPI Compilation Base Period Ld 2002 PPI Compilation Current Pernod g 2002 Cancel DRAFT DOCUMENTATION 5 August 2009 Click OK button the user will see following screen 2 Producer Price Index Compilation Model Data Status Fi File Edit Data Utilities Report Options Window Help E x 93 2 Base Period 06 2002 Change Data Ready 9 Data Partially Ready 4 Current Period 07 2002 Refresh Cancel Data not Ready Est ID Status ISIC District Establishment Name 06 2002 0222002 06 2002 MUN 1018 D1514 BARA ANNAPURNA VEGETABLE PRO 1217 D1514 SUNSARI NARAYAN VEGETABLE INDLIST e e e 2240 01514 MAKWANPL NEPAL VANASPATI GHEE e e e 3085 1514 KATHMAND NIRWAN VANASPATI UDYOG e 969 01514 BARA NIDHI OIL INDUSTRIES gt e 231 D1514 SHREE SAURABHA OIL MILL e e amp 961 01514 BARA SHI SHAKTI GHEE UDYOG e amp 1744 01514 MORANG SHREE RAM REFINE DIL PROD e 1147 01514 PARSA SUSHIL VANASPATI P T LTB e e 86 01514 KAILALI WIJAYA INDUSTRY
45. atives See STPR status 11 14 44 77 79 Status 44 STPR 15 System Configuration 36 System Requirements 31 Time Series 65 85 Transaction List 57 unlock worksheet 62 z score August 2009
46. bakery products GISENYI R022 BREAD CENTER CAMPANY 1541 Manufacture of bakery products R023 BOULANGERIE CHEZ VENANT 1541 Manufacture of bakery products RO24 KABUYE SUGER WORKS 1542 Manufacture of sugar R025 COVIBAR 1552 Manufacture of liquors banana Rrasserie Manufaz e nf malt linunrs and malt Sheetl indicates required fields Do not change the table format can add records at the bottom of the 3 25 2005 11 03 4M Ready Gzhu 3 25 2005 11 03 AM J Cn Cn Ch Cn C Ch Cn C8 Ch Ch an anni anni Cn Enter Est ID Est Name ISIC Code Description Region and Est Status information in the spreadsheet Please note that Est Status is an optional field if left blank the entry will automatically be saved as active establishment initiated and report Otherwise enter 1 for Refused to participate 2 for Out of business 3 for Could not locate 5 for Initiated and reported 6 for Resending for initiation 8 for No relevant product 9 for Not yet initiated and 7 for Unknown DRAFT DOCUMENTATION 47 August 2009 Au Producer Price Index Compilation Model Edit Reveiw Item Weights 11 12 13 14 n Mialo mI Edit Insert Formal Click here to save back to database Mew Open Save Save S Save to PPI Database Page Setup Print
47. cross establishment price entry the system provides threshold validation feature in which the user can define a threshold value The user defined threshold value will apply globally until next time the program re starts which will reset to default value of 20 When the price entered is greater or equal to the specified threshold that particular number will be shown in red to warn the user of a possible data entry error for the price quotation The system can also estimate the base period price of any particular variety using another calculated time series index as the deflator The user can specify an imputed index series select a particular period and its index will be used to estimate the base period price This feature is very useful in the case when a new product or variety is introduced to the System where base period price is not observable At the Input Price in Time Series Format screen the user can flag or un flag a price observation A price observation is flagged if it is an imputed value instead of actual price recorded Those flagged price observations will be shown in red in the System Global Recalculation of Establishment Product and Transaction Weights If an establishment status or assigned weight is changed it will affect another establishment s adjusted weights in the same industry For example if establishments are representative of other establishments they can be labeled as such and the weights of the other e
48. d earlier it is stressed that an important assumption behind the use of the software is that weighting information is available from establishments in the weight reference period at the most detailed level that is for a product specification within an establishment Weights should be input by the user at all levels If a user does not have such information and imputes them on the basis of equal weighting this is equivalent to using a Jevons index if a geometric mean is selected and a Carli if an arithmetic mean is used A Carli index fails the time reversal test and is less desirable than a Jevons index Users are strongly advised to use actual weights rather than weights imputed on the assumption of equal weights This is especially important if an arithmetic aggregation is used The Standard Laspeyres type Formula The standard Laspeyres type formula applicable up to the most detailed level of weighted items in the PPI basket compares the base period output quantities valued at current period prices the numerator with the value of the base period revenue the denominator and can be written as 2 del 0t N 0 i N 54 Pp N 4 2 X N i i where 1 n stands for the products comprising the output basket and symbols 0 t respectively designate the price reference period or the base price period and the current price period The symbols p and q designate the prices and
49. d tap with meter for valley and hills region 50 50 50 6 E4100 central 1600b household tap with meter for region 50 50 50 LN E4100 central 1800c household tap with meter for valley hills and terai regior 215 215 215 8 E4100 central 18009 Govt tap with meter 75 I5 is m E4100 central 1800e Govt tap without meter 240 240 240 210 4100 central 18001 Industrial Commercial 85 85 85 11 4100 central 18004 Public Stand Post 990 990 990 aM D1514 1 2165a SOYABIN OIL 13 50 KG TIN 653 75 671 2 687 07 13 D1514 1 2165b LOOSE PER KG 208 34 208 45 209 5 _14 D1514 1 2165 Jar of 15 kg 645 645 645 15 01514 2 2165e 1 2 LTR PAUCH 26 3 26 4 26 4 _ 16 _ 01514 2 216 1 LTR 10 PAUCH BAG 810 810 820 01514 2 21650 1 2 LTR 20 PAUCH BAG 810 810 810 18 01514 4 2165 2 LTR PACK 162 162 162 19 D1514 4 2165k 5 LTR PACK 428 404 6 408 1 20 01514 2 2165 Cartoon of 20 PACKETS 1 2 Ltrs each 423 423 423 CAUD D1514 2 2165m Cartoon of 10 BAGs 1 Ltr Each 423 423 423 pr D1514 1 2169a PAKWAN DALTA 15 KGs BATTA 61217 61211 622 04 23 D1514 2 21696 Tin of 15 Kg 612 6 612 621 5 24 D1514 2 2169 Cartoon of 10 pouch each 1 Ltrs 459 456 455 25 D1514 2 2169d 1 LTR PAUCH 62 25 62 25 62 25 26 D1514 2 2169 15 LTR TIN 603 603 540 r D1514 2 2169f Cartoon of 32 packets each 1 2 Ltrs 621 620 620 28 D1514 2 21594 Cartoon of 16 packets each 1 Ltrs 620 620 620 29 D1514 2 2169h Cartoon of 20 packets each 1 2 Ltrs 387 387 387 mimm 44 D
50. dard formula involves comparison of changes prices for each item over long time periods requiring the continuity of priced item specifications In practice varieties become permanently missing or unrepresentative and need to be replaced with new varieties for which there is no price the reference period 0 to compare with In these circumstances it is advisable to apply a modified version of the Laspeyres formula that makes use of 2 the price relative to the previous period that a new variety be 0 i introduced as soon as two successive price quotes are available Third when varieties are temporarily missing imputed prices may be used based on the overall price change of the product group in question Imputations over the short run are likely to be more reasonable than long run ones The basic formula for computing the PPI can be written as N t 5 Ip SE 2 100 t i N gt Ped i l DRAFT DOCUMENTATION 19 August 2009 P P pa where p q4 7 po qo X x x x p po Formula 5 which is arithmetically equivalent to formulas 2 and 4 is considered more versatile than the formula using long term price relative to the base period as the linking process used facilitates the introduction of new varieties and or items or substitution when the need arises and enables more reasonable imputations Formula 5 can also be rewritten as N P po Jg D w
51. duct classification systems They are internationally comparable The modified Laspeyres formula is used in the imputation process The standard Laspeyres formula is decomposed into three components Short Term Price Relatives STPR of current period Long Term Price Relatives LTPR 1 of previous period and Base Period Weight Wio The modified approach has several advantages over the standard formulation it facilitates 1 the introduction of new varieties as soon as two successive price quotations are available ii data verification and ili more reasonable assumptions of similar short run price changes for imputing missing values The PPI is calculated using the equivalent of a recursive procedure in which last period s cost weights or base weighted long term price relatives 1 qo are updated by the current period s price relatives p pt1 in order to obtain the corresponding current period cost weights The price averages can be calculated on the basis of matched observations Whenever a particular price observation is missing from either the previous month or the current month the corresponding price observations are eliminated from the other period This ensures a consistent sample of price quotations in each period However the system will be able to impute missing indices using next level data Once the missing indices are estimated the missing prices will be imputed and marked as red in the system The user can as
52. dustry a den t ata Collector Show Last Column By Search Alphabetically List All Establishment Search by Last Column Establishment Information total 15 records Establishment Notes SIC Code District ANHAPURNA VEGETABLE PRODUCTS PYT LTD 01514 BARA NARAYAN VEGETABLE INDUSTEIES LTD 01514 SUNSARI a NIR WAN UDYOG 01514 KATHMANDU SHREE SwASTIK OIL IND PVT LTD 01514 KATHMANDU MIDHI OIL INDUSTRIES 01514 BARA SAURABHA OIL MILL 01514 BANKE SHI SHAKTI GHEE UBDYOG PYT ETD 01514 BARA SHREE REFINE OIL PRODUCT PYT LTO 01514 SUSHIL VANASPATI PYT LTD 01514 HMAKWANPUR Select All Create Excel Sheet Refresh Cancel ISI co d 1 The user will see following screen which allows the user to specify the start period and the number of period m Export to Excel for Data Update Sel Please Select Start Period and Humber of Period Start Pernod 77177004 Humber of Period Cancel OF Click the OK button The user will see the previous screen with Excel Icon on the right hand side of the form DRAFT DOCUMENTATION 60 August 2009 Producer Price Index Compilation Model Create Excel Price Input Sheet File Edit Data Utilities Report Options Window Help E asla elu Search for Establishment Search by Establishment ID Search by Key Words
53. e X 2 Po which be interpreted as t N 7 wo as p i 1 t 1 i where w wo x E is an updated weight sometimes referred to as a cost 5 weight of item In other words to obtain the index for the current period t the Modified Laspeyres Approach involves multiplying individual price relatives of the latest price compared period 2 by the previous period s updated weight and then summing them The Modified Laspeyres formula has obvious advantages over the standard Laspeyres formula when we consider the problems arising from permanently unobservable varieties and the need in due course to the bring in a new variety Formula 6 can also be interpreted as Ip X 5 LTPR 150 i where STPR 1 is the short term price relative of item for current period p p and LTPR4 o is the long term price relative of item for previous period p DRAFT DOCUMENTATION 20 August 2009 to replace the missing one There is a need to impute a base period price if the standard Laspeyres formula is used Such imputation is unnecessary while using the Modified Laspeyres formula in which case the current period weight for the replacement item is obtained by simply multiplying the last updated weight for the replaced item by the current period s short term price relative of the replacement item The system uses the modified Laspey
54. e strongly advised to use actual weights rather than weights imputed on the assumption of equal weights The weights used can be price updated to the reference period or can be actual weights For the arithmetic option the resulting formulas would be a Lowe index price updated weights and Young index without price updating For the geometric option the weights for a geometric Laspeyres also referred to as a Geometric Young should not be price updated Price updated weights should only be used with arithmetic aggregation The System has flexible data input and output modules the user can batch input and upload establishment information and price data using a spreadsheet and transfer them into the PPI system Alternatively the user can enter data into the system directly Reports can be generated at different aggregation levels on an ad hoc basis or in time series format All the compiled results have a tabulation format and can be easily exported to Excel HTML formats The System allows the user to define an additional dimension of transaction list in addition to CPA or CPC level This transaction list reflects the particular production pattern of a country and can be unique to a specific country Since each transaction list is connected to the product a parent it is closely integrated 3 ISIC Rev 3 1 Please visit web page http unstats un org unsd cr registry regct asp L g 1 DRAFT DOCUMENTATION 5 August 2009 with standard pro
55. e the product and transaction information Please note if there are multiple products in one establishment the user has to designate a product under which she wants to add the transaction The user can not add a transaction directly under another transaction The user can also enter weights for each transaction Input Price Quotation After defining products and varieties structure the user is ready to input price quotations The user has several methods to input price Method 1 Batch Price Data Input Click Utilities Create Excel for Update from toolbar Producer Price Index Compilation Model Create Excel Price Input Sheet File Edit Data WEE Report Options Window Help je ET Ey Create Excel Far Update Search for Establi Import Export Classification System Search by Es Review Coding System Search by Ke Global Impute Save Weights C Search by Inc Weight Update Search Alpha Excel Data Transfer Repair and Compact PPI Database f List All Establishment Search by Last Column Establishment Information total 15 records EstiD Establishment Name Select establishments by ticking the small square boxes in the first column Then click Create Excel Sheet button DRAFT DOCUMENTATION 59 August 2009 21 Create Excel Price Input Sheet Search for Establishment C Search by Establishment ID District Search by Key Words Region Compilable gt Search by In
56. em shortcut at Desktop DRAFT DOCUMENTATION 35 August 2009 The Basics To start PPI program Click Start All Programs PPI System then click icon or click PPI System icon from the desktop Main Manu 7 International Monetary Fund Price Index Processor Version 1 Producer Price Index 1 0 30 DB 1 Data Check re TS Report 1 0 30 is the application version number and DB1 is the database version oystem Configuration DRAFT DOCUMENTATION 96 August 2009 The user can configure the PPI System work environment by clicking the button in the main screen or clicking Options Configure in toolbar The user can define following settings 1 select the default database location 2 select the default database name the user can disconnect to a PPI database and re connect to another PPI database If the database the user selected does not exist the user will be prompted by following message C Program FilesYPPI System DatalPPIDE mdb does not exist da you want En create it If the user clicks Yes the system will create a new database 3 create a new PPI database 4 define default product classification system by selecting either CPA or CPC or User Defined System 5 define default imputation method 6 define default elementary formula Click Apply after changes have been made Click Refresh button to view most recent changes that have been made DRAFT
57. g and preserving of meat 5 R002 BCK 1511 Production processing and preserving of meat ROOS SHEMAFRUITS 1513 Processing and preserving of fruit and vegetable BUTARE ROO4 CONFIGI Configi Internationa amp Coop 1513 Processing and preserving of fruit and vegetable BUTARE ROO5 COOP APROJUFUGI 1513 Processing and preserving of fruit and vegetable CY ANGUGU SOPROMARU IBENGEZA 1513 Processing and preserving of fruit and vegetable KIGALI RURAL ROO URWIBUTSO 1514 Processing and preserving of fruit and vegetable ROOS ASSOABI 1513 Processing and preserving of fruit and vegetable KIBUNGO R009 INYANGE DAIRY 1520 Manufacture of dairy products R010 NYABISINDU DAIRY Laiterie du Rwe 1520 Manufacture of dairy products BUTARE R011 RUBIRIZI DIARY 1520 Manufacture of dairy products R012 SOTIRU S A 1531 Manufacture of grain mill products RUHENGERI R013 DUHAMIC ADRI 1531 Manufacture of grain mill products R014 CUCURIRVVA ABIBUMBYE 1531 Manufacture of grain mill products KIBUNGO R015 CPCRB 1531 Manufacture of grain mill products CY ANGUGU R016 KARUBANDA RICE MILLING 1531 Manufacture of grain mill products BUTARE R017 UCORIBU 1531 Manufacture of grain mill products BUTARE R018 SOPAR 1533 Manufacture of prepared animal feeds Ville de Kigali R019 KABUYE POULTRY S 1533 Manufacture of prepared animal feeds KIGALI RURAL R020 ATHENEE Moderne 1541 Manufacture of bakery products R021 BOUL DE 1541 Manufacture of
58. h List All Cancel ISIC Code total 537 records ISIC Code ISIC Description Agriculture hunting and forestry Agriculture hunting and related service activities Growing of crops market gardening horticulture Growing of cereals and other crops n e c Growing of vegetables horticultural specialties and nursery products Growing of Fruit nuts beverage and spice crops Farming of animals Farming of cattle sheep goats horses asses mules and hinnies dairy farming Other animal Farming production of animal products n e c Growing of crops combined with Farming of animals mised Farming Growing of crops combined with farming of animals mixed Farming Agricultural and animal husbandry service activities except veterinary activities Agricultural and animal husbandry service activities except veterinary activities Hunting trapping and game propagation including related service activities Hunting trapping and game propagation including related service activities Forestry logging and related service activities Forestry lagging and related service activities Forestry logging and related service activities Fishing Fishing aquaculture and service activities incidental to fishing Fishing aquaculture and service activities incidental to fishing Fishing M 122922004 2 11 For example you can search for an ISIC code with 29 as the first two digits DRAFT DOCUMENTATION 49 August 2009 8 Producer Price Index Compilati
59. hment Contact Could not locate Initiated and reported Hesending for reinttiation Address 1 No relevant product Phone Hot yet inihated Address 2 Unknown Postal Email City Be Province Country District Notes New Cancel Batch Edit Upload Click button to input or edit multiple establishments at a time As is apparent from the above screen the user designates whether the establishment is selected with certainty in which case the weight for the establishment will represent the active sample or whether the establishment is selected with a probability attached in which case an adjustment can be made to the assigned weight Again it is stressed that the compiler can always make adjustments to the weights outside of the system and enter the adjusted weights with certainty If the probability options are used great care should be exercised by running trial data first DRAFT DOCUMENTATION 46 August 2009 8 Producer Price Index Compilation Model Edit Reveiw Item Weights 9 File Edit Insert Format Tools Help 3g V Ey x alsin BAG e SILA 2 5 fo z Bl zi ole Al B E E E G Please do not change the table format You can add rows at the end of the worksheet Click Save to PPI Database once you finished Est ID Est Name ISIC Code Description Region Est Status R001 SABAN 1511 Production processin
60. hments for a single transaction Click the Data Cross Establishment Price Comparison button as shown below Producer Price Index Compilation Model Price Input File Edit WAEN Utilities Report Options Window Help a Pre Compile Data Check 9 rg mi E Establish Establish Data Status Indicator Cross Est Price Comparison Products Ww 218a UTII MEME VENE _ 568325 57285 ET HON LL Soyabean Oil Ree Tin of 13 1 3 KG 590 20 590 20 gr 3 57 Retrieve Cancel The user will see following screen DRAFT DOCUMENTATION 1 August 2009 Producer Price Index Compilation Model Active Product and Transaction Treeview File Edit Data Lltiliies Report Options Window Help x 5 Search for a Product or Transaction 21 53 Search List All Cancel Please Select a Transaction for Cross Establishment Price Comparison Active Product Transaction List 2169 Vegetables Ghee NH NEN 22 2169 Jar of 15 KG 2169a PAR AN DALTA 15 KGs BATTA S 15 KGs JAR cos 21695 Tin of 15 Kg 2169c Cartoon of 10 pouch each 1 Ltrs 22 215 Jar contained 15 LTRs 2169d 1 LTR PALICH 2 9 15LTR TIN eM 2169f Cartoon of 32 packets each 122 Ltrs eM 21699 Cartoon of 16 packets each 1 Ltra 2169h Cartoon of
61. ilters have been implemented to detect the possible errors and outliers of short term price relatives The first one is based on Chebyshev s theorem which applies to all possible price relative distributions This theorem predicts that at least 88 8 percent of all the observations in a data set will lie in the range of the mean plus or minus 3 standard deviations and at least 75 percent will fall within the mean plus or minus 2 standard deviations Alternatively observations with z score greater than 3 will be potential outliers The second method is Box Plots in which price relative data are re sorted in ascending order and median and 1 and 3 quartiles are calculated Observations that fall outside of outer quartiles are considered as possible outliers The third method is to assume price relatives are log normally distributed Therefore by transforming them into logarithmic form the price relatives data will exhibit the normal distribution The intervals are calculated multiplicatively and any price relatives that lie outside of the mean plus or minus 2 standard deviations will be identified as the possible outliers The System will impute price relatives for missing items and missing prices If no price quotation is entered for any of the transactions its price relative is imputed using average price relatives from the entire product group of the missing item Missing prices of one or some transaction of a particular item are estimated as the
62. ion wo Base Price Prey Price Lurr Price 0622002 08 2002 09 2002 All Products Agriculture forestry and fishery products Products of agriculture horticulture and m O11 Cereals 0111 Wheat and meslin 01110 Wheat and meslin 011108 Wheat and meslin 011105 Wheat and meslin 2 Food products beverages and tobacco t 21 Meat fish fruit vegetables oils and Fats 216 Animal and vegetable oils and fats Soyabean 16933 66 0 1 2 3 4 4 5 5 e 3 4 Index Compilation The user defines compilation method by choosing one of the options By Industry By Establishment By Product or By Location The equally weighted elementary level compilation always uses the geometric mean The user can also choose either Laspeyres type or Geometric Laspeyres type formula in the compilation at the weighted level If Modified Two stage is checked the system uses the previous period Long Term Price Relatives LTPR which is price index number from period 0 to period t 1 in the calculation please refer the Chapter 3 Methodology for the details of formula Alternatively base period price Pig to previous period price P and current period price P will be used the imputation process Imputation results will be showed in following screen DRAFT DOCUMENTATION 82 August 2009 42 Producer Price Index Compilation Model PPI Index Report File Edit Data Utilities Report Options Window Help 15 x amp
63. ne whether the data is good for compilation the user can click Data Pre Compile Data Check button Producer Price Index Compilation Model Main Manu Edit Utilities Report Options Window Help Pre Compile Data Check l 52 21 102 Daka Status Indicator Detection of Outliers Cross Est Price Comparison onetary Fund Generate Average Price Price Index Processor Version 1 Producer Price Index 1 0 31 DB 1 The system is able to find out following data errors 1 missing establishment ID 2 missing weight area 3 missing product and transaction weights information 4 missing establishment status 5 missing establishment weights and 6 whether product and transaction weights exceed 10096 For example the following screen shows that there are several errors for different establishment They are interrelated the establishment weight is missing and adjusted weight is missing DRAFT DOCUMENTATION ff August 2009 42 Producer Price Index Compilation Model Data Diagnosis and Data Check B gt File Edit Data Utilities Report Options iy ev Ey gt es e 181 Soli Check Data Error D ata Diagnosis and Error Check Report SH Error Type 5 244 Est weight is missing 908 Est weight ig missing 821 Est weight ig missing 853 Est weight ig missing 844 Est adjusted weight 15 missing 908 Est adjusted weight i missing 921 Es
64. of Products by Activity CPC Central Product Classification and user defined product 1 Please visit web page http unstats un org unsd cr ctryreg ctrydetail asp id 254 2 Please visit web page http unstats un org unsd cr registry regcst asp Cl 16 DOCUMENTATION 4 August 2009 classification system It adopts ISIC International Standard Industrial Classification of All Economic Activities as the default industrial classification system It allows the user to choose one of the two alternative formulae for aggregation arithmetic or geometric with four basic compilation methods compile by a industry b product c establishment and d geographical area It is stressed that the formula for aggregation is either arithmetic or geometric at all stages Unlike the CPI processor there is no distinction between elementary and higher level aggregation An important assumption behind the use of the software is that weighting information 5 available from establishments in the weight reference period at the most detailed level that is for a product specification within an establishment Weights should be input by the user at all levels If a user does not have such information and imputes them on the basis of equal weighting this is equivalent to using a Jevons index if a geometric mean is selected and a Carli if an arithmetic mean is used A Carli index fails the time reversal test and is less desirable than a Jevons index Users ar
65. of base price Do you Wank bo continue Help Cancel DEE TIT na m d mews TT In the next step the user has to select an index series as the deflator Click OK in the following dialogue box You are about to deflate using 9 1 2002 price and value of 583 200267577043 For estimating price of base period of 06 2002 Please select index From next screen that will be used as deflator estamation of base price Do vou want continue Click Preview button if the data is not populated Elementary Formula Laspe Preview Export Export Format E f Excel Lone e um DRAFT DOCUMENTATION 69 August 2009 Methodology f By Industry By Establishment f Product By Region 5 Contents f PPI Index Updated Weight Heta Data Include W Indust A egion Code iw W Product Code Description Pernodocity Start Date 7122002 of Period 3 Time Seres Report 3 83 records Est ID Code 2165 Soyabean 165 Sovabean 2165 Soyabean 2165 Undefined Level Desc elect as D Tin of 13 142 1LTR 10 PALICH BAG 1 2 LTR Cartoon of 20 PACKETS 1 Elementary Formula Laspeyres Geometric Laspeuresz Export Format Excel HTML 0722002 100 00 100 0
66. oke re calculation Invoke re caleulatian Invoke re calculation Invoke re calculation Invoke re caleulatian Invoke re caleulatian Invoke re caleulatian Invoke re caleulatian Invoke recalculation Invoke re caleulatian Invoke recalculation Invoke re calculation Invoke recalculation Invoke re caleulatian Invoke recalculation Invoke re calculation Invoke re calculation lt Double click the red color the fonts the program will bring to the screen where the error can be corrected lf no error has been found the user will see following message box Recalculation of Weights DRAFT DOCUMENTATION 78 August 2009 Producer Price Index Compilation Model Main Manu File Edit Data Report Options Window Help je ET Create Excel for Update Ctrl F Import Export Classification Systern Review Coding System Global Impute Save Weights Weight Update Excel Data Transfer Repair and Compact PPI Database 31 DB 1 Global Impute Save Weights triggers a recalculation based on establishment status and sample group the establishment belongs to and newly assigned weight If excess weight is assigned to an establishment these extra weight will be taken and re allocated to other establishments Similarly if less weight is assigned to a particular establishment the weight will be also re calculated and redistributed along with the rest of establishments An establishment is typically classified
67. on Model Select an Industry File Edit Data Utilities Report Options Window Help E x as e ales 90 exi Search for an industry from ISIC Key words g Search List All Cancel ISIC Code total 18 records 029 Manufacture of machinery and equipment 0291 Manufacture of general purpose machinery 02911 Manufacture of engines and turbines except aircraft vehicle and cycle engines 02912 Manufacture of pumps compressors taps and valves 02913 Manufacture of bearings gears gearing and driving elements 02914 Manufacture of ovens furnaces and furnace burners 02915 Manufacture of lifting and handling equipment D 2313 Manufacture of other general purpose machinery 0292 Manufacture of special purpose machinery D 2921 Manufacture of agricultural and forestry machinery 02922 Manufacture of machine tools D 2923 Manufacture of machinery for metallurgy D 2924 Manufacture of machinery for mining quarrying and construction D 2925 Manufacture of machinery for food beverage and tobacco processing D 2925 Manufacture of machinery for textile apparel and leather production D 2927 Manufacture of weapons and ammunition 02929 Manufacture of other special purpose machinery 0293 Manufacture of domestic appliances 02930 Manufacture of domestic appliances 3 25 2005 11 32 Edit Establishment Product or Transaction Click the Edit button to edit est
68. on Table into the Database and ISIC Code browse for the file and click the OK button DRAFT DOCUMENTATION 41 August 2009 Producer Price Index Compilation Model Import Export Product Industry Classification File Edit Data Utilities Report Options Window Help MEIE IE C Export Classification Table to Excel f SIC Code Import Classification Table into the Database CPA CPC User Defined Excel File Location and C WBeades PPINVENISIC Help Cancel Help Raw Data My Recent PPT Help Documents 5 xls h tbIISIC xls Desktop Documents Computer ees File name ISIC xls Network Files of type Excel format xls Cancel aces Open read only DRAFT DOCUMENTATION 42 August 2009 Add New Establishment Click the etr button to add a new establishment Enter the establishment information in each field Fields with indicate required fields Click Est ID Coding button to get a program generated establishment ID for newly added establishment Establishment Coding Structure Total 14 Establishments Establishment ID Establishment Name ANNAPUANA VEGETABLE PRODUCTS SUSHIL VANASPATI PVT LTD VIJAYA INDUSTRY Auto Generate ADHUNIK DAIRY PRODUCT PYT LTD BIRATNAGAR DUGDHA BITRAN AYOJANA DUGDHA PADARTHA UTPADAN BIK
69. ormally be a Young or Lowe index depending on whether the weights are price updated The term Laspeyres or is used with this in mind Second for the CPI software although such indices may be referred to as Laspeyres aggregation is in two stages the elementary level using an equally weighted geometric mean Jevons index and the weighted higher level using a Laspeyres or geometric Laspeyres This is not so for the processor The gains from weighting are considered to be substantial and weights can more feasibly be obtained from establishments for a PPI than outlets for a CPI Thus there is no elementary unweighted stage here Third a modified two stage formulation will be used as outlined below Elementary Index Formulas Compilers should note that the PPI software does not an elementary aggregation stage though we note here the properties of such formula since this has implications for the index if no weights are available The PP Manual Chapters 1 and 20 favors the use of geometric mean formula Jevons index on axiomatic grounds for equally weighted index numbers The Jevons index is defined as follows DP T z i l The arithmetic mean of price relatives Carli index is biased especially in a chained form and the ratio of arithmetic means of prices Dutot index is only suitable for strictly homogeneous varieties DRAFT DOCUMENTATION 17 August 2009 Although note
70. orted The establishment status indicates the current standing of the establishment as in one of following situations 1 refuse to participate 2 out of business could not locate 5 initiated and reported 6 resending for initiation 8 no relevant product DRAFT DOCUMENTATION 44 August 2009 9 not yet initiated and 7 unknown In the PPI software if a producer is in the status 5 initiated and reported its data will be entered in the index compilation process Establishments in the remaining status groups are considered inactive the producer s economic information will not affect the index compilation Every establishment can be classified into one of the two sample groups either certainty selected group or probability selected group Probability sampling means the selection of sample panel of producers and products transactions from a universe of industrial activity in which each producer and product has a known chance of selection It has two well known advantages First it ensures that the items to be priced are selected in an impartial and objective fashion Second it permits the measurement of the quality of the survey results through estimates of the variance or sampling error Certainty non probability sampling is known as judgmental or purposive sampling and samples are chosen by experts to be representative Certainty selected establishments or producers are usually those whose emplo
71. otations of varieties in that commodity group Imputed indices and prices will be stored database with a flag These imputed indices and prices are shown in the tabulation in red color Missing price index is estimated using its parent index as the proxy i e if a specific variety s index is missing due to the missing prices the index of the product or item it belongs to will be taken to be representative The system always uses the next available level index data in the same group or item for the missing index e g if level 7 index is missing level 6 index will be used if level 6 index is missing level 5 index will be used so on so forth Holding missing prices for a variety constant by carrying the last observation forward i e making the short term price relative for that variety equal to 1 0 during a period of high inflation would cause short term distortion in the index because it would understate inflation while the variety was unavailable and then show a large increase in the index when the variety became available The system therefore does not use carry forward prices We do not use the price for the same variety in another outlet to represent the missing price in this outlet Thus if Coca Cola price is missing in one particular outlet the system will not take the other outlet s Coca Cola price as a proxy instead it will take soft drink index in the same outlet to represent that of Coca Cola Since parent group price changes are
72. price observation is missing from either the previous month or the current month the corresponding price observations are eliminated from the other period This is equivalent to imputing the price of variety 1 in period t by the short run price change of the other varieties in the product group This ensures that the price averages are calculated on the basis of matched observations i e a consistent sample of price quotations in each period In the following example we consider that item s prices are collected for four representative varieties 7 2 3 and 4 In the current month transaction 1 s price cannot be collected is missing Transaction v of item Month t 1 Month t Transaction 1 1 50 Transaction 2 1 25 1 25 Transaction 3 1 25 1 50 Transaction 4 1 50 1 50 Average 1 37 1 41 Average for matched 1 33 1 41 observations DRAFT DOCUMENTATION 23 August 2009 Transaction 2 Transaction 3 Transaction 4 Short term relative for item 1 0627 1 41 1 33 For the PPI calculation of month t the geometric average price for month 1 1 should be recalculated based on matched observations as 1 25 1 25 1 50 9 1 33 and not 1 50 1 25 1 25 1 50 7 37 The month fs short term price relative for item is then 1 0627 1 41 1 33 and not 1 0309 1 41 1 37 Impute Missing Indices amp Prices The PPI System program will impute missing STPRs LTPRs and updated weights based on the information available from other price qu
73. r all items by industry by product by establishment and by geographic location The PPI measures the proportionate or percentage changes in a set of producer s prices over a period of time It is an important indicator of macroeconomic performance In particular it measures price change component of the output of production by resident producers Its components are crucial in the preparation of a country s national accounts in volume terms The PPI System follows the guidelines of the Manual Producer Price Index Manual Theory and Practice 2004 Washington D C International Monetary Fund et al URL http www imf org external np sta tegppi which provides guidance about concepts definitions classifications coverage valuation recording data aggregation procedures formulas and so on It also describes the international standards for PPI compilation These standards draw upon the collective experience and expertise accumulated in many countries The PPI System calculates indices as weighted averages of the percentage price changes for a specified set or basket of products the weights reflecting their relative importance in producer goods in some period The current version PPI System consists of four parts 1 Data Entry and Editing 2 Data Diagnosis and Validation 3 Index Imputation and 4 Tabulation and Reporting They are integrated into a single database environment The System works with CPA Classification
74. rence Date 06 2002 b Establishment Assigned eight 63809 Fite tuted wears jmd mr d Establishment Adjusted Weight 236747 32 pased the est status and sample group Products Transactions f Eniera note fara EN IUe _ ans Prodyct Description Umit Weight Share ctiv sus thes ext ac Son vr An rn ers sd 7 oF SS 168373 66 ECCE a alg fame 59002 40 002 Add Product Add Trans n 5 Hefresh Cancel Price Input gt Click the amp button to select a product from a pre defined product classification system The user should double click to select a product from the most detailed level A search feature is provided for the user to quickly find the product she wants to locate The user can type the complete word or part of that word the search will be performed not only on the description but also on the notes field DRAFT DOCUMENTATION 56 August 2009 Producer Price Index Compilation Model Select a Product Code File Edit Data Utilities Report Options Window Help Ey eln emp ase Search for a product from CPC Classification Key words Search List All Product Classification System 67 f CPC 5 Cancel Treeview CPC coding system total 3650 records CPC Code Digit CPC Description 1 Agnculture forestry and fisher products Products of agriculture horticulture and m
75. res approach to calculate PPI based on monthly price quotations or monthly average price quotations and weights information The price index is assigned a value of 100 in the base period and value of the index for other periods of time which indicate the average proportionate or percentage change in price levels The Young and Lowe indices Instead of holding the weight reference period at 0 the PPI System allows the user to compile a PPI as a weighted geometric arithmetic average of the individual price relatives holding constant the output revenue shares at period b A preceding period b is used for weights since it takes time to compile the results for weights before they are used in the index The resulting index is called a Young index In this case the formula should be revised as N t 1 1 pi 2 pe The weight reference period b is likely to precede price reference period 0 because it takes time to collect and process the output revenue data For example a monthly PPI may run from January 2010 onwards with January 2010 100 but the quantities may be derived from the annual output business survey made in say 2008 or June 2008 to July 2009 In that case we have the choice of assuming that e ther the quantities of period b remain constant or the output revenue shares in period b remain constant equation 8 does the latter A Lowe index holds quantities constant in period b and is given by
76. s Calculating Adjusted Weights If sampling establishments so that some are selected with certainty say as a cut off sample and some are selected to be representative of the remaining establishments the weights of each establishment in the latter need to be The reason to exclude those price relative with 100 value is that presumably there are a lot of no change price relatives By including them we will observe a bimodal distribution Since it is no longer normally distributed we cannot apply a 2 sigma limit with 95 confidence to detect outliers DRAFT DOCUMENTATION 28 August 2009 adjusted Further establishments may disappear from the active sample it may be necessary to redistribute the weight across the active sample These two effects are picked up in an adjustment routine for the weights The establishment adjusted weight is calculated based on the sample group to which the establishment is classified For the sample group selected with certainty an establishment adjusted weight is equal to the establishment assigned weight They only represent themselves For the probability selected establishments the weights are assumed equal for each establishment and assigned as wi W n where W is the total weight for the sample group and n the number of establishments in the probability group However if establishment s disappear from the sample though still sell goods and services in reality
77. scretion Any unsolicited changes of the table structure will cause errors and data can then not be saved properly But if it is absolutely necessary the user can unprotect this worksheet by clicking Tools Protection Protect Sheet button The password for unlocking this worksheet is 123 Method 2 Enter Update Price Through Windows Form Click the Price input Price Input button in edit product screen or click Edit from main menu select an establishment right click select Edit Price button as showed below DRAFT DOCUMENTATION 62 August 2009 f List All Establishments Search by Last Column stablishment Information total 15 records right click for editting EsuD Establishment N ame 1 PECIDIICTC Edit Establishment 2 VEGETA Edit Product 3 NEPAL VANHASPATI Edit Price 4 HIF WAN 5 SHREE Swastik _ 9 Notes Edit Price for Est 1 b HIDHI OIL INDUST Refresh SAURABHA OIL Clone Establishment 8 SHI SHAKTI GHEE Delete Establishment 9 SHREE HEFIH 10 SUSHIL VANASPATI PVT LTD The price edit screen looks like Price Input Establishment ID 1 Establishment Product Code 06 2002 07 2002 08 2002 5 2168 Ghee amp Jar of 15 KG 563 25 572 85 2165 pM Tin of 1317 3 Kl 590 20 595 00 ne 21656 Pouch af 1 LTA 45 04 50 00 Hetrieve Refresh H Cancel
78. sociate detailed meta data and notes up to about 22 pages of MS Word document to an establishment product transaction or to a specific price observation The PPI system has a flag to show whether the user has entered any meta data using different color coding Each price observation can be flagged or un flagged to indicate whether the price is imputed by the PPI system The user can also create a new establishment by cloning an existing one Each establishment is associated with a label which indicates its current status The establishment status will determine whether the establishment will be included in the index calculation This feature is important in conducting sample rotation and introducing new establishments The user can also clone a transaction through which quality adjustment is made possible The base period price can be estimated through a calculated index as a deflator Both non statistical checking and statistical checking are available for identifying the possible errors and outliers of input data Non statistical checking is implemented to check whether specific price data has increased more than a designated threshold which is definable by the user The recorded prices will be compared to the previous prices of the same items While this procedure may DRAFT DOCUMENTATION 6 August 2009 detect obvious unusual price changes it is far from certain that all possible errors will be detected Three statistical methods or f
79. stablishments allocated to them as explained in Chapter 3 Further if establishments can be allocated to a group if an establishment is out of business its nominal assigned weight will be taken and redistributed to the other active establishments Global recalculation is necessary whenever the establishment status or weight field is changed The global re calculation feature provides the user a tool to reallocate the weights once the relevant information associated with the establishment is changed Using this feature the user can activate and deactivate an establishment easily Industry Classification and Product Classification The system uses ISIC as its default industry classification scheme The user can select an industry code and assign it to an establishment ISIC coding scheme is editable The user can download a copy of ISIC code and edit it and upload to the System as the main industry classification system DRAFT DOCUMENTATION 13 August 2009 Both and CPA product classification schemes are available as the product classification for aggregation and compilation Users can download the CPC or CPA structure make modification and upload it to the PPI software as a user defined product classification scheme Data Diagnosis and Error Checks The System has a built in module for the user to diagnose data errors and check for possible missing critical variables The System then generates a detail report if errors are de
80. t adjusted weight ts missing 953 Est adjusted weight is missing 044 Praduct transaction is missing 308 Praduct transaction weight is missing 906 Praduct transaction weight missing 906 Praduct tranzaction weight is missing 908 Praduct transaction weight is missing 908 Producttansaction weight is missing 908 Praduct transaction weight i missing 908 Praduct transactian weight is missing 821 Praduct transaction weight is missing 821 Praduct transaction weight is missing 921 Praduct transaction weight is missing 821 Praduct transaction weight is missing 946 Praduct transactian weiht is missinal Window Help Est ID Est Hame 939 JAMLUME ITTA UDHOG 920 BIMDAwASHINI KASTHA UDHYOG 785 Gandaki Furniture Udhyog 3341 EVEREST PYT LTD ndicate s at 838 JAMLINE 920 BINDAWASHIAT 5 UDHYOG BINDAVWwASHINI KASTHA UDHYOG 920 BINDAWASHIAT FAS TAS UDHYOG dee THA UDHYOG UDHYOG 920 BINDAWASHIAT KASTRA UDHYOG 920 BIMDAwASHINI KASTHA UDHYOG 820 BIMDAwASHINI 5 UDHYOG 785 Gandaki Furniture Udhyog foo Gandaki Furniture Udhyog 785 Gandaki Furniture Udhyog 785 Gandaki Furniture Udhyog 402 HULAS METAL CRAFTS PVT LTD Cancel Remedy Provide Est weight Provide Est weight Provide Est weight Provide Est weight Invoke re caleulatian Invoke recalculation Invoke re caleulatian Inv
81. t editor for the user to enter and edit information The user can also use copy cut and paste feature to move a passage from another document to the System The user can determine whether a product or transaction is active or inactive by checking or un checking the Active box This switch will determine whether a particular product or transaction will be included in the index calculation If one product is activated by default all the transaction defined under this product will be activated as well The user can set particular transaction inactive while keeping the rest active If the user activate a transaction the product it belongs to will automatically be set as active Multiple Ways of Entering the Price Quotations Once the products and varieties are defined the user is ready for the price observation input The System offers multiple ways for entering the price quotes The user can enter the prices for a all varieties in one establishment for three periods base previous and current period or one transaction for multiple periods in time series format or c one transaction across all establishments in one year The user can also d generate an Excel spreadsheet for price editing and inputting This spreadsheet can be sent to the remote users for entering price and validation and it is reusable Once it is finished it can be uploaded into the PPI database DRAFT DOCUMENTATION 12 August 2009 For both time series
82. te the quartiles in CPI PPI application is same as that used in Excel It uses n 1 instead of n the p th percentile is defined by 1 9 x j 1 g x j 2 where n 1 p j g and 0 is taken to be x 1 DRAFT DOCUMENTATION 27 August 2009 Let be the number of observations in a data set here n 4 X 1 X n the ordered values of a data set Let p be the p th percentile we want to calculate e g p 0 25 0 5 or 0 75 We ll calculate the product n p the product n p can be split up between where is the integer part of n p and is the decimal part of n p Example To better understand this method we ll apply them on an simple example The data set studied is Once ordered it becomes In this example for Q1 p 0 25 n 4 1 3 0 25 0 75 2 0 25 1 0 75 2 1 75 thus the 25 percentile is 1 75 with this method Log normal Method Another procedure that has been implemented into the software to identify the possible errors and outliers is to use 2s from the log normal distribution excluding price relatives of 100 no change of prices from previous to current period It takes the natural logarithms of price relatives data which is assumed log normally distributed The standard deviation and mean of the logged of all price relatives in the sample are calculated Those price relatives that fall outside of 2 standard deviations with 95 confidence level are considered as possible outlier
83. tected By double clicking on the error item the user goes directly to the screen where such errors can be corrected Data Status Indicator The System has a graphical indicator to show the availability of all the establishment data for the compiling period Indicators inform the compiler whether the price data are currently 1 available 2 partially available or 3 not yet ready Data Status Indicator will also show establishment status whether the establishment is initiated and reported or out of business etc By clicking on the establishment the user will be prompted a screen where price can be entered or updated This provides a useful and intuitive tool for the statistical staff at central office who can follow up any missing establishment price data and prepare for final compilation of the index Calculating Average Prices The PPI System has a separate module to calculate the average prices for the transactions across the establishments The averages are imputed based on identical transactions in the same unit measure Such transactions are maintained in the transaction list of the System Compilation Method The PPI System can compile price indices by 1 Industry 2 product 3 establishment and 4 by geographical area using one of an arithmetic formula or 2 a geometric formula at levels The software requires weights are available at all levels built up from individual transactions at the establishment level Thus the
84. tes a cumulated price change since period 0 in the above example the base and previous period are the same so the STPR PPI 3 Updated W is the price updated weights The system updates weight for every period as part of the two stage procedure PPI indices will be plugged into the imputation as next period if Two stage modified index box is checked Imputation results can be exported to the Excel easily The user can click Export to Excel Export to Excel Computer button then an Excel icon will appear in the screen Excel File Click the link imputation results will be exported to the Excel spreadsheet DRAFT DOCUMENTATION 83 August 2009 42 Producer Price Index Compilation Model PPI Index Report File Edit Data Utilities Report Options Window Help eS x 8 Current Period 07 2002 User ID 402 Print Previous Period 06 2002 Computer Export to Excel Base Period 06 2002 Show Report at Save to HTML Report run at 12 14 2004 10 24 17 AM 8 wii estimated Total 992 records ISIC Digit Code Description STPR Updated Ww PPI 1 Agriculture hunting and forestry 2 Agriculture hunting and related service activities A011 3 Growing of crops market gardening horticulture 12 4 Growing of vegetables horticultural specialties and 5 0
85. the weights of the remaining establishments can be adjusted so that those still active get allocated a prorata share of those that are inactive within its sample segment If there were 5 selects initially and they each had a value weight of 20 and one disappears and 4 remain each would get a weight of 25 An establishment adjusted value weight is equal to an establishment assigned value weight 20 divided by the total value weight of establishments that are active in the product group 80 then times the total value weight of establishments both active and inactive establishments of the product group 100 i e Assigned W 9 y 4 i x we 1 n 1 Ware i 1 in which is adjusted weight of an establishment W4 is assigned weight of an establishment we is the total weight of active establishments and i l wn is the total weights of all the establishments This is to say that weights i l of those inactive establishments will be taken and redistributed to the active establishment based on its share in total active weights In the probability selected group the adjusted weight for an establishment being selected with probability is Active wed ly ge and the adjusted weight to represent n 1 Active i gt i establishments no longer active is DRAFT DOCUMENTATION 29 August 2009 1 i y 4 _ yy foot i x i jj sense i i Compilers are strongly advised
86. to run these adjustment procedures with trial data to ensure the understand their use If in doubt adjustments can be made outside of the system and the adjusted weights used as the assigned weights DRAFT DOCUMENTATION 30 August 2009 Installation of the Software Basic Information The PPI System is developed using Microsoft Visual Basic 6 0 Both cross section data and time series data are stored in Microsoft Access format The system uses Microsoft ActiveX Data Objects ADO 2 8 for the data access and database management The data access object is included in Microsoft Data Access Components MDAC The system uses VideoSoft ActiveX Controls VSFlexGrid 7 0 and Formula One for the tabulation Wise InstallBuilder 8 03 for software packaging and RoboHelp for generating standard Microsoft HTML help file file Package Contents The installation package on the PPI distribution CD Rom includes all necessary files and ActiveX components for the system to operate Microsoft data access components will be installed in user s computer The package contains database tables for industry classification of ISIC Rev 3 1 CPA 2002 and CPC version 1 1 product classifications They are distributed by the United Nations and EUROSTAT respectfully system Requirements The system requirements are as follows a Operating Systems Windows 98 Windows NT 4 0 Windows 2000 Windows ME or Windows XP b Microsoft Office
87. tup program WARNING This program is protected by copyright law and International treaties Unauthorized reproduction or distribution of this program or any portion of it may result in severe crvil and criminal penalties and will be prosecuted to the maximum extent possible under Click Next J3 Choose Destination Location Setup will install Producer Price Index Compilation System in the following folder install into different Folder click Browse and select another folder Y au can choose not to install Producer Price Indes Compilation Sistem clicking Cancel to exit Setup Click Next DRAFT DOCUMENTATION 33 August 2009 42 Select Program Manager Group Enter the name of the Program Manager group to add Producer Price Index Compilation System icons to Accessories Administrative Tools Software BroadCloud ComponentOne Actives Controls ComponentOne Studia Dell Accessories Econometric Tools Economic Systems Fellowes NEATU MediaFALE Flashation Menu Builder Handspring Icon Cool Editor NE Click Next Installing Current File Copying file 2 Sustem PFIS ample mdb Time Remaining minutes 5 seconds lt Back gt Cancel DRAFT DOCUMENTATION 94 August 2009 Wait until installation is complete Click the Finish button to complete the installation process Installation will create PPI Syst
88. ure The diagram below shows the PPI System design and architect mm i stablishment E IgE NI Contact Info etc 0 2 Code Classification CM iE and User Defined Transaction List Chajacteristic Quotations 7 DRAFT DOCUMENTATION 9 August 2009 The PPI System Database Design The PPI system allows the user to define construct and manipulate underline database using Microsoft ActiveX Data Objects ADO same type of interface and library used by Access to programmatically access data Database table design and relationships are illustrated in following diagram Microsoft Access Relationships og File Edit View Relationships Tools Window Help question for help amp 8 x De BalSQ s Bel B XB ae tblEst tblISIC tblCountry Code1 Code Description display name tblEstWeight tbICPA tblUserDef Version ID AppVversion Code Code1 Digit Description Description EstAdjwWeight Flag CompileMethod lt Ready NUM DRAFT DOCUMENTATION 10 August 2009 g amp AAT BN Sl B 7 7 Establishment Product and Transaction Model The System is developed based on establishment product and transaction model It stores the establishment information as the key element Each establishment can carry multiple products each product can have multiple transactions The user can specify the weight
89. vel phenomenon Outliers occur when the relative frequency distribution of the data set is extremely skewed Such distributions have a tendency to include extremely large or small observations The PPI CPI software implemented two procedures to identify the possible errors and outliers The first one is non statistical procedure which is to find whether specific price observation falls outside some pre specified acceptance interval In the Input Price in Time Series Format screen the user can specify a threshold value default is 2096 for any price change is greater than the threshold the increased percentage will be shown in red and bold which indicates the possibility of errors or outliers The second one is the statistical procedure in which three methods are implemented In both cases outlier detection should not result in automatic deletion Often price changes are undertaken after some time and the pent up prices changes are unusually large To delete them would bias the index downwards The outlier detection is to alert the compiler about a possible error that needs further investigation DRAFT DOCUMENTATION 25 August 2009 Method of using z score In a z score test the mean and standard deviation of the entire data set are used to obtain a z score for each data point according to following formula X If the observations have a bell shaped distribution standard normal distribution the interval from x
90. y inputting some keywords in a description field but also search for any digit in the ISIC product code DRAFT DOCUMENTATION 11 August 2009 After the product is selected the user can create a transaction list that is defined under this product At this level the user has the freedom to create its own transaction list which can be specific to their country The user is firstly offered a list that has been previously created If she finds that the transaction that needs to be entered is in the list she can select it Alternatively she can add a new transaction that will be stored in the database and shared across the establishments In this way the system provides an additional dimension for the user to reflect their country s own unique production pattern At the same time each transaction is well integrated into a standard product classification system through a parent for international price comparison The user can clone a transaction together with its price data The duplicated transaction record will have the identical details except for two fields that are different from the original one One is the transaction code cloned transaction will have an new unique transaction code and the other is the weight of that transaction which is O by default for the cloned transaction For each product or transaction the user can maintain a note for keeping explanatory information about the product and transaction The System provides a tex
91. yment output or sales exceed some percentage of the sample intervals Establishments selected with certainty may be by some cut off procedure with establishments under the cut off threshold selected with probability In the PPI software establishment adjusted weights are calculated based on sample group in which an establishment is classified as explained in Chapter 3 For the sample group selected with certainty an establishment s adjusted weight is equal to an establishment assigned weight divided by total weights of establishments that are active in the industry then multiplied by total weights of establishments both active and inactive establishments of industry In probability selected group the routine will first calculating an effective share of an establishment then multiply this by a total weights refer to Chapter 3 Methodology for the formulae of calculating the adjusted weights Click Establishment Group to define the group that an establishment belongs to DRAFT DOCUMENTATION 45 August 2009 Jj Establishment 1 Create Establishment Establishment ID Est ID Coding Establishment Batch Edit Upload ISIC Code Select From ISIC ISIC Description 4 Region Lompilable are required fields Establishment Information Establishment Status Initiated and reported Sample Group 1 Certainty Establishment Group Refused to participate Out of business Data Collector Info Establis

User Guide for PPI System - United Nations Economic Commission

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