1 PPI Quality Assessment FrameworkIrwin Gerduk

2 PPI Survey StandardizationTypes of price Pricing methodology Sample design Monthly pricing procedures Data table formats Data collection methods

3 Tools for Achieving StandardizationPPI Quality Assessment Framework Initial industry surveying manual Data initiation manual Monthly pricing manual Index methodology, index calculation, index review, and data dissemination manual

4 Framework: Major ConceptsOutput price Transaction price Shipment price Representative of current period production Constant quality Monthly price measure

5 Framework: Statistical and Sample Design IssuesSampling frame Sample design Response rates Planned publication detail Item specification

6 Scoring System Type A Deflator – Score of above 90Type B Deflator – Score of 70 to 90 Type C Deflator – Score of below 70

7 Assessments performed:At completion of the design phase At completion of initial data initiation Periodically during the multi-year index calculation period

8 PPI vs. ATA

9 PPI vs. ATA

10 Domestic Scheduled Passenger Air TransportationEnormous upward bias in the PPI index in the 1990 – 2003 period PPI and ATA indexes largely similar in the 2004 – 2007 period Neither series is quality adjusted Normalized PPI score improved from 65 (Type C deflator) to 79 (middling Type B)