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October 16, 2015, 13:00-17:30  Venue:CIGS Meeting Room3

Joint workshop CIGS and HIT-REFINED (Hitotsubashi University) "Economic Measurement on Property Prices and Consumer Prices"

CIGS held a joint workshop with Institute of Economic Research, Hitotsubashi University on October 16, 2015, under the theme of “Economic Measurement on Property Prices and Consumer Prices.”

  • Workshop outline
     Robust measures of property price indexes (PPIs) have been recognised as an important gap in the data available for monetary policy and financial stability. The compilation of accurate PPIs is problematic. In principle PPIs should be based on transactions of residential / commercial property. However, the heterogeneous nature properties and the irregularity of transactions (particularly in illiquid, recession-hit markets) complicate comparisons of average transaction prices for a fixed-quality bundle of properties over time. This requires that compilers deviate from the more traditional methodological approaches that are typically employed for other price indices.
     The on-going financial crisis has led to an increasing pressure on National Statistical Institutes (NSIs) to develop suitable conceptual and methodological frameworks for the compilation of transaction-based PPIs. Typically, indices compiled in the private sector have been appraisal-based, often using valuations of property portfolios. However, these measures may suffer from subjectivity, as well as smoothing and lagging of market price development.
     Can NSIs realistically expect to compile pure transactions based PPIs? It is almost certain that conceptual and methodological compromises will be required. It may, for example, be necessary to combine valuation data with transaction data in order to develop sufficiently robust measures. There is a concern that NSIs and other compilers of official statistics will determine that the compilation of PPIs require compromises that they are unwilling to make, leaving a significant data gap unfilled.
     This workshop discussed together experts and representing academia who are helping to develop new approaches to the compilation of PPIs.
     In addition PPIs, we also discussed about CPI, which is also major price index for financial stability.

  • Opening Remarks

    • Iichiro Uesugi, Professor, Institute of Economic Research, Hitotsubashi University

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    Presentation

    • Presenter: Chihiro Shimizu , Senior Research Fellow, CIGS
      "Commercial Property Price Indexes and System of National Account" (with E. Diewert)



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    • Presenter: W. Erwin Diewert, Professor, the University of British Colombia
      "Residential Property Price Indexes for Tokyo" (with C. Shimizu)



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    • Presenter: Yongheng Deng, Professor, National University of Singapore
      "House Price Distribution and Price Indexes in Tokyo" (with G. Xiangyu and C. Shimizu)



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    • Presenter: Tsutomu Watanabe, Research Director, CIGS
      "How Much Do Official Price Indexes Tell Us about Inflation?" (with J. Handbury, D. E. Weinstein)



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    Concluding Remarks

    • Tsutomu Watanabe, Research Director, CIGS

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