To look more closely at the sources of changes in the NAICS 334 deflator
and their potential consequences for broader aggregates, I employed the NBER-CES manufacturing database, which has data on nominal value-added and shipments deflators
for 30 six-digit manufacturing industries in NAICS 334 from 1958 through 2011.
They provide the data from which Table 36 (constant dollars) and Based on Department of Defense Price Deflator
Except for nondurables, correlations at longer horizons are of greater magnitude; Den Haan also found this to be true for the GDP deflator
and GDP and for the CPI and IP.
While we did in fact obtain results using the CPI, there are several reasons why we elected not to report them in favor of the PCE deflator
* Price measures: GDP deflator
is the ratio of nominal GDP (GDP) and real chain-weighted GDP (GDPH); nonfarm business deflator
(LXNFI); Consumer Price Index (PCU); and personal consumption expenditures deflator
Example 1: Company A computed the base-year cost of its 1998 increment as follows: FIFO value of 12/31/98 inventory $208,000 1997 cumulative deflator
index 2.00 1998 deflator
index x 1.04 1998 cumulative deflator
index / 2.08 Base-year cost of 1998 inventory $200,000 Base-year cost of 1997 inventory - $150,000 Base-year cost of 1998 increment $50,000 A's inventory turned over four times in 1998.
Department of Commerce uses the national price deflator
weighted by shares of each sector in the respective states' GSP.
The purpose of this brief note is to show the extent to which the choice of the deflator
can alter the adjustment of a monetary economy to various shocks in a qualitative, and hence important, way.
For its 1982 benchmark indexes of office and computing machines, the Census Bureau adopted the price deflator
that the Commerce Department's Bureau of Economic Analysis (BEA) and the IBM Corporation developed jointly.
Implementation of a consumer price index deflator
deduction (CPIDD) would bring the areas of the Tax Code relating to capital gains on sale or exchange of various classes of property closer into line with the economic realities of our society.
On a 12-month basis, the headline deflator
posted a 2.0% y/y growth rate versus 2.0% y/y, while the core rate was 1.8% y/y versus 1.9% (revised from 2.0%).
For the countries covered by the analysis as a whole, the growth differential between the consumption deflator
and the value added deflator
has been small and depends on the precise measure of the consumption deflator