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Bias in the Import Price Index Due to Outsourcing: Can It Be Measured?” Paper presented at the conference “Measurement Issues Arising from the Growth of Globalization,” held in

By W. Erwin Diewert and Alice O. Nakamura

Abstract

In this paper we present new measures for the bias in an import price index due to outsourcing. The m easure is developed fi rst for a high ly simplified case for the purpose of conveying the rationale for the measure. It is then generalized, yielding a m eaasure that could b e used in empirical stu dies. Before taking up this bias measurement problem, however, we expl ain the m easurement context. This contextual material makes it clear that the growth of outs ourcing and offshoring poses mutliple interrelated problems for official statistics agencies

Year: 2010
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