Construction of confidence intervals for the Laspeyres price index

In the paper, we present and discuss several methods of the construction of confidence intervals for the Laspeyres price index. We assume that prices of commodities are normally distributed and we consider both independent and dependent prices. Using Monte Carlo simulation, the paper compares the confidence interval computed from a simple econometric model with those obtained based on the Laspeyres density function. Our conclusions can be generalized to other price index formulas.