An econometric analysis of the Italian cultural supply

TL;DR

This paper introduces a new multilateral, multi-period price index for comparing cultural supply prices across Italy and other countries, offering broader coverage and robust properties.

Contribution

It devises a novel price index that covers multiple periods and countries with a comprehensive reference basket, including formulas and properties.

Findings

The index performs well with real and simulated data.

It offers broader coverage than traditional indexes.

Properties of the index are thoroughly analyzed.

Abstract

Price indexes in time and space is a most relevant topic in statistical analysis from both the methodological and the application side. In this paper a price index providing a novel and effective solution to price indexes over several periods and among several countries, that is in both a multi-period and a multilateral framework, is devised. The reference basket of the devised index is the union of the intersections of the baskets of all periods/countries in pairs. As such, it provides a broader coverage than usual indexes. Index closed-form expressions and updating formulas are provided and properties investigated. Last, applications with real and simulated data provide evidence of the performance of the index at stake.