Abstract
Owen Shoemaker (2002) "Estimation and Analysis of Variance Components
for the Revised CPI Housing Sample."
In 1999, the Bureau of Labor Statistics (BLS) introduced a new
Housing Sample for the Rent and Rental Equivalency (REQ) estimators in
the U.S. Consumer Price Index (CPI). The Housing Sample consists of,
roughly, 10,000 sampled segments, composed of U.S. Census blocks,
allocated in 87 Primary Sampling Units (PSUs) and collected in six
panels every six months. In this paper, we model the 6-month price
relative for both Rent and REQ, and analyze a random effects model that
treats PSU and Segment as two random effects. We look at three years of
data (1999-2001). We use the Restricted Maximum Likelihood (REML)
estimation method to produce the variance components. Standard F-test
procedures are applied to determine the significance of the effects in
the model. Finally, the variance component results are compared to a set
of variance components produced from the previous housing sample
(1987-1998).
Last Modified Date: March 19, 2003
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