Causes and Consequences of Bias in the Consumer Price Index as a Measure of the Cost of Living

2005 ◽  
Vol 33 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Michael J. Boskin
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Cost Of Living ◽  
The Cost

scholarly journals The Consumer Price Index

2014 ◽  
Vol 8 (1) ◽  
pp. 101-108
Author(s):  
James Hodgson
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Base Period ◽  
Cost Of Living ◽  
Modern Methods ◽  
The Cost ◽  
Cost Of Living Index ◽  
Made In

Summary A brief study of the new index called Consumer Price Index (C .P. I.) which will replace the Cost of Living Index (C. L. I.). In order to make such a change, specialists were called in to work on this for nearly three years. During the survey begun in 1948, the most modern methods of sampling were used. Instead of 1935-1939, the base period chosen was 1949. In view of the increasing importance of the index in the labour world, the author analyses briefly the changes made in the former index and emphasizes the problems involved in such a changeover.

scholarly journals Temporal cost-of-living index: from the generation of conception to the applied assessment

2018 ◽  
Vol 15 (5) ◽  
pp. 63-72 ◽  
Author(s):  
M. A. Kozlova
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Cost Of Living ◽  
Second Stage ◽  
Indicator Development ◽  
History Of ◽  
Two Stages ◽  
The Cost ◽  
Bureau Of Labor Statistics ◽  
Cost Of Living Index

The purpose of this paper consists in the identification of historical development pattern of the cost-of-living index, which is a significant price indicator of macroeconomic process.Materials and methods. The analysis of the cost-of-living index conception in dynamics is realized on the base of the foreign (American and West European) periodical data, also on the base of bulletins of U.S. Bureau of Labor Statistics. The methods of research is an analysis of generated conceptions of the cost-of-living index, mathematically well-founded selection of possible formulae of cost-of-living index, empirical justification of hypotheses about the ratio of the cost-of-living index and other indexes, the numerical estimation of bias calculated in relation of the cost-of-living index.Results. The history of cost-of-living index development was divided into two stages, the boundary between two stages is 1945, when the price index, which was calculated before this moment and named the cost-of-living index, was renamed the consumer price index. The first stage (from the middle of 1910th to 1945) was described by the first accumulation of data and researches. The most part of researches consists of the survey papers and articles estimating the modern methods of cost-of living index assessment. In addition, there are some articles about the conception of cost-of-living index ant its formulae that are the base of researches after 1945. On the second stage when the investigations of cost-of-living index and consumer price index were divided, the most part of articles consists of the mathematical selection and proofs concerning the detection of the sphere of determinant to cost-of-living index of indicators (income and expenditure, used technology, family structure), also concerning the inclusion and connection of cost-of-living index in the context of economics. Empirical works of the second stage confirm some theoretical ideas on the base of national statistics.Conclusion. The temporal cost-of-living index is the significant indicator not only of price process in the national economy, also dynamics marker of the standard of living. The effort to attract the attention to cost-of-living index will allow methodically enriching the economic researches and generating the ways of this indicator development. Among the ways it needs to mark out the calculating “alternative” consumer price indexes with due regard to approximation to cost-of-living index, realization of econometric investigation on the base of Russian statistics and intensification of the theoretical analysis on the base of conception of the true cost-of-living index by A. Konüs.

scholarly journals Consumer Prices, the Consumer Price Index, and the Cost of Living

1998 ◽  
Vol 12 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Michael J Boskin ◽  
Ellen R Dulberger ◽  
Robert J Gordon ◽  
Zvi Griliches ◽  
Dale W Jorgenson
Keyword(s):  
Price Index ◽  
New Products ◽  
Consumer Price Index ◽  
Quality Improvements ◽  
Cost Of Living ◽  
Quality Change ◽  
Consumer Prices ◽  
The Rich ◽  
The Cost

After presenting major findings and recommendations, the CPI Commission reiterates the estimate of a 1.1 percentage point per annum upward bias. It rejects the contention that the BLS already makes substantial corrections for quality change; that quality improvements and new products accrue only to the rich; and that procedures to make more extensive quality adjustments, valuations of new products, and adjustments for commodity and outlet substitution are impractical. The bias in the CPI can be sharply reduced, as the authors detail in this paper. Coauthors are Ellen R. Dulberger, Robert J. Gordon, Zvi Griliches, and Dale W. Jorgenson.

scholarly journals PENENTUAN BIAYA KECELAKAAN LALU LINTAS: STUDI KASUS LOMBOK TIMUR

2018 ◽  
Vol 1 (3) ◽  
pp. 128
Author(s):  
Andyka Kusuma ◽  
Tri Tjahjono ◽  
Nuzul Achjar
Keyword(s):  
Traffic Safety ◽  
Human Development Index ◽  
Traffic Accident ◽  
Analytical Approach ◽  
Traffic Accidents ◽  
Price Index ◽  
Consumer Price Index ◽  
Potential Losses ◽  
The Cost ◽  
The City

Traffic accident cost analysis is needed to predict potential losses of nation due to the emergence of traffic accident victims. The cost of traffic accidents in Indonesia is based on the characteristics of the City of Bandung in 2003, and it is shown that the cost of traffic accidents can vary according to regional characteristics. This study tries to compare the analytical approach in Bandung in 2003 with the Consumer Price Index and Human Development Index approaches for an area with medium accessibility, namely East Lombok, West Nusa Tenggara Province. The location of traffic accidents greatly influences the cost of traffic accidents, because the costs on inter-city roads are relatively higher compared to those on roads in the city. This study shows that the cost of traffic accidents is related to accessibility of health facilities. This analysis can be developed for all regions in Indonesia, so that it can be used as a reference for traffic stakeholders in assessing the performance of the traffic safety programs implemented. Analisis biaya kecelakaan lalu lintas diperlukan untuk memprediksi potensi kerugian negara akibat timbulnya korban kecelakaan lalu lintas. Biaya kecelakaan lalu lintas di Indonesia dibangun berdasarkan karakteristik kota Bandung tahun 2003, dan diperlihatkan bahwa biaya kecelakaan lalu lintas dapat bervariasi sesuai dengan karakteristik wilayah. Penelitian ini mencoba membandingkan pendekatan analisis di Bandung tahun 2003 dengan pendekatan Indeks Harga Konsumen dan Indeks Pembangunan Manusia untuk suatu wilayah dengan aksesibilitas menengah, yakni Lombok Timur, Provinsi Nusa Tenggara Barat. Lokasi kecelakaan lalu lintas sangat mempengaruhi biaya kecelakaan lalu lintas, karena biaya di jalan antar kota relatif lebih tinggi dibandingkan dengan biaya di jalan dalam kota. Penelitian ini meperlihatkan bahwa biaya kecelakaan lalu lintas terkait dengan aksesibilitas fasilitas kesehatan. Analisis ini dapat dikembangkan untuk semua wilayah di Indonesia, sehingga dapat dijadikan acuan bagi pemangku kepentingan lalu lintas dalam menilai kinerja program keselamatan lalu lintas yang dijalankan.

scholarly journals The Impact of Housing Density on Site Development Costs

1977 ◽  
Vol 6 (2) ◽  
pp. 263-274
Author(s):  
Leslie E. Small ◽  
Donn A. Derr
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Housing Density ◽  
Middle Income ◽  
The Past ◽  
Site Development ◽  
Income Groups ◽  
Development Costs ◽  
The Cost ◽  
The Impact

During the past decade, the cost of constructing new homes has risen dramatically. While the overall consumer price index rose by 74 percent between 1967 and the end of 1976, the cost of constructing new housing rose by about 103 percent nationally. This trend in costs has priced a growing proportion of lower and middle income groups out of the market for new houses. The national average price for new housing is currently $52,000 per unit. This has led to expressions of public concern that efforts need to be undertaken to find ways by which these low and middle income groups can obtain access to new housing.

scholarly journals Breast-Feeding Decline despite Deteriorating Socio-Economic Conditions

1994 ◽  
Vol 15 (3) ◽  
pp. 1-3
Author(s):  
Bendley Melville
Keyword(s):  
Breast Feeding ◽  
Price Index ◽  
Consumer Price Index ◽  
Economic Hardship ◽  
Artificial Feeding ◽  
Economic Conditions ◽  
Feeding Duration ◽  
Food And Drink ◽  
The Cost ◽  
The Impact

The impact of deteriorating socio-economic conditions on breast-feeding duration in Jamaica is examined In spite of dramatic increases in the consumer price index for food and drink and consequently in the cost of artificial feeding, breast-feeding duration declined by 10.6% during 19871991. This was apparently due to a reduction in postpartum visits by district midwives. It is concluded that breast-feeding promotion should receive increased support under conditions of severe economic hardship.

Measuring Aggregate Price Indices with Taste Shocks: Theory and Evidence for CES Preferences*

2019 ◽  
Vol 135 (1) ◽  
pp. 503-560 ◽  
Author(s):  
Stephen J Redding ◽  
David E Weinstein
Keyword(s):  
Price Index ◽  
Demand Systems ◽  
Price Indices ◽  
Cost Of Living ◽  
Price Shocks ◽  
Demand Shocks ◽  
Expenditure Share ◽  
The Cost ◽  
Ces Preferences

Abstract We develop an approach to measuring the cost of living for CES preferences that treats demand shocks as taste shocks that are equivalent to price shocks. In the presence of relative taste shocks, the Sato-Vartia price index is upward biased because an increase in the relative consumer taste for a variety lowers its taste-adjusted price and raises its expenditure share. By failing to allow for this association, the Sato-Vartia index underweights drops in taste-adjusted prices and overweights increases in taste-adjusted prices, leading to what we call a “taste-shock bias.” We show that this bias generalizes to other invertible demand systems.

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