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Original Articles

Exploring Theil's best linear indexes

Pages 462-465 | Published online: 10 Aug 2012
 

Abstract

Theil (Citation1960) estimates price and quantity indexes jointly by orthogonal regression. This letter shows how to bootstrap Theil's indexes and how to detect outliers. Aggregation issues are discussed, and the methodology is applied to a cross section of nursing facilities.

JEL Classification:

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