Proposal for the Local Government Price Index

Abstract:     
A medium level price index that regards an easily definable group of economic agents is to set out in this paper starting from the well-known methodological problems of measuring inflation. The local government price index is derived from other price indices published by the Hungarian Central Statistical Office (HCSO), so it can be calculated at a small expense. Moreover, it can be used not only for an analysis, but also for control purposes. However, the development of the real value of local government fiscal resources is not decisive, it is only a factor in the debate on the sufficiency of funding of local governments. A more accurate evaluation of the real value of local government fiscal resources is essential in terms of an analysis, and it can also be used in the creation process of a better and more transparent intergovernmental fiscal allocation mechanism.

Number of Pages in PDF File: 15

Keywords: price index, local governments

JEL Classification: C81, H73

working papers series