Tag Archives: Averages

And the local election results show …………

The media coverage of the results of the local elections (in May 2019) has at times been deeply misleading with voting outcomes not being accurately described. The problem is two-fold. First, the usual way of presenting the figures – in terms of seats, percentage share of the vote and swings – can give a very misleading impression. It has on this occasion as the usual metrics have been distorted by the plummeting turnout compared to 2015 (when the turnout was high due to the General Election). No one single summary statistic can be relied upon in all circumstances. Second, it is nigh on impossible to get the actual voting figures. The country deserves a central publication point for election data to allow anyone to do their own, neutral, assessment of the trends. The time has come for the UK to have more transparency about its election results – surely one of the most fundamental of all statistics – as befits a developed democracy. Without this, the voters are unlikely to get a fair sense of the results given much of the interpretation is being done by politicians or columnists skilful enough to select their factoids to suit their own story or others who are innumerate, wilfully or naively ignorant of the facts, or producing projections from black box models.

Continue reading And the local election results show …………

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The truth about the RPI – some brief comments

I spoke at an event about the Retail Prices Index (RPI) last week and made three points – that there is a misunderstanding about the formula effect, ONS is too influenced by economists’ ‘group think’ and weaknesses in governance. These can all be resolved easily, returning RPI to full use, if ONS and UKSA wants to. It was widely agreed that “the mess” had to be sorted out, and as the RPI cannot be killed off some modest changes to it are required.  Continue reading The truth about the RPI – some brief comments

The price of a house – a stupid average

The ONS published this week a new – I’d say conceptually more sound – experimental house price index. It is based on the stock of homes not the flow so tells us what’s happening to the whole market not the price of what’s just been sold.  The estimate of the average price is lower than under the old methodology – £194,000 compared to £215,000 in the old measure, about 10% lower. The stroke of the methodologist’s pen has made homes more affordable even though no prices have changed! Perhaps this is the time to reflect on the full range of house price estimates at our disposal – and, dare I say it, how meaningless the average numbers are? Depending on what you count and how you add the numbers up, the resulting averages can be wildly different, as much as £100,000 apart.  Continue reading The price of a house – a stupid average

Average earnings aren’t really average earnings

The earnings figures are very important and politically sensitive, yet the trends are highly uncertain and poorly presented by ONS. The poor presentation by the ONS centres on the failure to remove compositional changes and present earnings growth on a like-for-like basis. This has not only led to an overly pessimistic view of what’s happening in the real world but means that political and media attention has been diverted from the real issues in the labour market.

Continue reading Average earnings aren’t really average earnings