Understanding Price Variation Across Stores and Supermarket Chains: Some Implications for CPI Aggregation Methods

The empirical literature on price indices consistently finds that aggregation methods have a considerable impact, particularly when scanner data are used. This paper outlines a novel approach to test for the homogeneity of goods and hence for the appropriateness of aggregation. A hedonic regression framework is used to test for item homogeneity across four supermarket chains and across stores within each of these supermarket chains. We find empirical support for the aggregation of prices across stores which belong to the same supermarket chain. Support was also found for the aggregation of prices across three of the four supermarket chains.Price indexes; aggregation; scanner data; unit values; item homogeneity; hedonics

Can Dissimilarity Indexes Resolve the Issue of When to Chain Price Indexes?

Chaining is used in index number construction to update weights and link new items into an index. However, chained indexes can suffer from, sometimes substantial, drift. The Consumer Price Index Manual (ILO, 2004) recommends the use of dissimilarity indexes to determine when chaining is appropriate. This study provides the first empirical application of dissimilarity indexes in this context. We find that dissimilarity indexes do not appear to be sufficient to resolve the issue of when to chain.Index numbers; price indexes; chain drift; dissimilarity

Using a Constant Elasticity of Substitution Index to Estimate a Cost of Living Index: From Theory to Practice

Indexes often incorporate various biases due to their methods of construction. The Constant Elasticity of Substitution (CES) index can potentially eliminate substitution bias without needing current period expenditure data. The CES index requires an elasticity parameter. We derive a system of equations from which this parameter is estimated. We find that consumers are highly responsive to price changes at the elementary aggregation level. The results support the use of a geometric rather than arithmetic mean index at the elementary aggregate level. However, we find that even the use of a geometric mean index at the elementary aggregate level may not sufficiently account for the observed level of consumer substitution.Price indexes; elasticity of substitution; scanner data

Scanner Data, Time Aggregation and the Construction of Price Indexes

The impact of weekly, monthly and quarterly time aggregation on estimates of price change is examined for nineteen different supermarket item categories over a fifteen month period using scanner data. We find that time aggregation choices (the choice of a weekly, monthly or quarterly unit value concept for prices) have a considerable impact on estimates of price change. When chained indexes are used, the difference in price change estimates can be huge, ranging from 0.28% to 29.73% for a superlative (Fisher) index and an incredible 14.88% to 46,463.71% for a non-superlative (Laspeyres) index. The results suggest that traditional index number theory breaks down when weekly data with severe price bouncing are used, even for superlative indexes. Monthly and (in some cases even) quarterly time aggregation were found to be insufficient to eliminate downward drift in superlative indexes. In order to eliminate chain drift, multilateral index number methods are adapted to provide drift free measures of price change.Price indexes, aggregation, scanner data, chain drift, superlative indexes, unit values, multilateral index number methods, rolling window GEKS, rolli

Evaluation of components, subsystems, and networks for high rate, high frequency space communications

The development of new space communications technologies by NASA has included both commercial applications and space science requirements. NASA's Systems Integration, Test and Evaluation (SITE) Space Communication System Simulator is a hardware based laboratory simulator for evaluating space communications technologies at the component, subsystem, system, and network level, geared toward high frequency, high data rate systems. The SITE facility is well-suited for evaluation of the new technologies required for the Space Exploration Initiative (SEI) and advanced commercial systems. Described here are the technology developments and evaluation requirements for current and planned commercial and space science programs. Also examined are the capabilities of SITE, the past, present and planned future configurations of the SITE facility, and applications of SITE to evaluation of SEI technology

Multichannel demultiplexer/demodulator technologies for future satellite communication systems

NASA-Lewis' Space Electronics Div. supports ongoing research in advanced satellite communication architectures, onboard processing, and technology development. Recent studies indicate that meshed VSAT (very small aperture terminal) satellite communication networks using FDMA (frequency division multiple access) uplinks and TDMA (time division multiplexed) downlinks are required to meet future communication needs. One of the critical advancements in such a satellite communication network is the multichannel demultiplexer/demodulator (MCDD). The progress is described which was made in MCDD development using either acousto-optical, optical, or digital technologies

Experience with Delay-Tolerant Networking from Orbit

We describe the first use from space of the Bundle Protocol for Delay-Tolerant Networking (DTN) and lessons learned from experiments made and experience gained with this protocol. The Disaster Monitoring Constellation (DMC), constructed by Surrey Satellite Technology Ltd (SSTL), is a multiple-satellite Earth-imaging low-Earth-orbit sensor network in which recorded image swaths are stored onboard each satellite and later downloaded from the satellite payloads to a ground station. Store-and-forward of images with capture and later download gives each satellite the characteristics of a node in a disruption-tolerant network. Originally developed for the Interplanetary Internet, DTNs are now under investigation in an Internet Research Task Force (IRTF) DTN research group (RG), which has developed a bundle architecture and protocol. The DMC is technically advanced in its adoption of the Internet Protocol (IP) for its imaging payloads and for satellite command and control, based around reuse of commercial networking and link protocols. These satellites use of IP has enabled earlier experiments with the Cisco router in Low Earth Orbit (CLEO) onboard the constellation s UK-DMC satellite. Earth images are downloaded from the satellites using a custom IP-based high-speed transfer protocol developed by SSTL, Saratoga, which tolerates unusual link environments. Saratoga has been documented in the Internet Engineering Task Force (IETF) for wider adoption. We experiment with the use of DTNRG bundle concepts onboard the UK-DMC satellite, by examining how Saratoga can be used as a DTN convergence layer to carry the DTNRG Bundle Protocol, so that sensor images can be delivered to ground stations and beyond as bundles. Our practical experience with the first successful use of the DTNRG Bundle Protocol in a space environment gives us insights into the design of the Bundle Protocol and enables us to identify issues that must be addressed before wider deployment of the Bundle Protocol. Published in 2010 by John Wiley & Sons, Ltd. KEY WORDS: Internet; UK-DMC; satellite; Delay-Tolerant Networking (DTN); Bundle Protoco

Quantifying the commonalities in structure and plastic deformation in disordered materials

The nonequilibrium nature of kinetically frozen solids such as metallic glasses (MGs) is at once responsible for their unusual properties, complex and cooperative deformation mechanisms, and their ability to explore various metastable states in the rugged potential energy landscape. These features coupled with the presence of a glass transition temperature, above which the solid flows like a supercooled liquid, open the door to thermoplastic forming operations at low thermal budget as well as thermomechanical treatments that can either age (structurally relax) or rejuvenate the glass. Thus, glasses can exist in various structural states depending on their synthesis method and thermomechanical history. Nanocrystalline (NC) metals, also considered to be far-from-equilibrium materials owing to the large fraction of atoms residing near grain boundaries (GBs), share many commonalities with MGs both in terms of plastic deformation and its dependence on processing history. Despite these similarities, the disorder intrinsic to both classes of materials has precluded the development of structure-property relationships that can capture the multiplicity of energetic states that glasses and GBs may possess. Here, we report on experimental studies of MG and NC materials and novel synthesis and processing routes for controlling the structural state – and as a consequence, the mechanical properties. A particular focus will be on strategies for rejuvenation of disorder with the goal of suppressing shear localization and endowing damage tolerance. We also describe a microscopic structural quantity designed by machine learning to be maximally predictive of plastic rearrangements and further demonstrate a causal link between this measure and both the size of rearrangements and the macroscopic yield strain. We find remarkable commonality in all of these quantities in disordered materials with vastly different inter-particle interactions and spanning a large range of elastic modulus and particle size