Syllabus for Building a Price Index with R

Putting price-index theory into practice requires computational tools. An especially useful tool for building and analyzing price indices is the R programming language.

The goal of this module is to provide hands-on experience building and analyzing a price index with R. By the end of this module, an individual should:

1. Understand how to apply price-index theory to construct a price index.
2. Know how to compare price indices from different sources.
3. Be familiar with how to construct and analyze a price index with R.

This module is useful for compilers of price indices with a basic understanding of the theory and construction of a price index, and who would like to put the theory into practice and gain a deeper understanding of R.

This module consists of a large assignment that has learners build and analyze a price index in R over a week. The pace of the module is self-directed, but 15 to 20 hours should be devoted for this work. All data for this assignment were randomly generated.

Prerequisites: Introduction to Price Indices, and a basic understanding of R. Price Index Theory and Constant-Quality Price Indices, along with an intermediate understanding of R, are helpful.

Evaluation for this module is based on a single assignment that draws on learners’ prior knowledge of price-index theory. The assignment consists of 4 questions. Collaboration on the assignment is encouraged, but each person must submit their own unique work. Answers to the assignment, along with working code for each question is worth 20%. The instructor must be able to understand and run your code. Each correctly answered question is worth an additional 20%. Passing this module requires a grade of 60% or more.

Please email one of the course instructors (either Steve Martin or Shaoxiong Wang or Anastasiia Nosach) if you have any questions, or need help with any of the course material or assignment.