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 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 Tests for Price Indices in a Dynamic Item Universe

2019 ◽  
Vol 35 (3) ◽  
pp. 683-697
Author(s):  
Li-Chun Zhang ◽  
Ingvild Johansen ◽  
Ragnhild Nygaard
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Scanner Data ◽  
Price Indices ◽  
Cost Of Living ◽  
Quality Change ◽  
Large Index ◽  
New Goods ◽  
Cost Of Living Index ◽  
Index Family

Abstract There is generally a need to deal with quality change and new goods in the consumer price index due to the underlying dynamic item universe. Traditionally axiomatic tests are defined for a fixed universe. We propose five tests explicitly formulated for a dynamic item universe, and motivate them both from the perspectives of a cost-of-goods index and a cost-of-living index. None of the indices that are currently available for making use of scanner data satisfies all the tests at the same time. The set of tests provides a rigorous diagnostic for whether an index is completely appropriate in a dynamic item universe, as well as pointing towards the directions of possible remedies. We thus outline a large index family that potentially can satisfy all the tests.

scholarly journals Sources of Bias and Solutions to Bias in the Consumer Price Index

2003 ◽  
Vol 17 (1) ◽  
pp. 23-44 ◽  
Author(s):  
Jerry Hausman
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Second Order ◽  
Order Effects ◽  
Scanner Data ◽  
Cost Of Living ◽  
First Order ◽  
Consumer Prices ◽  
Substitution Bias ◽  
Cost Of Living Index

Four sources of bias in the Consumer Prices Index (CPI) have been identified. The most discussed is substitution bias, which creates a second order bias in the CPI. Three other changes besides prices changes create first order effects on a correctly measured cost of living index (COLI). I explain in this paper that a “pure price” based approach of surveying prices to estimate a COLI cannot succeed in solving the 3 problems of first order bias. I discuss economic and econometric approaches to measuring the first order bias effects as well as the availability of scanner data that would permit implementation of the techniques.

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 Statistical Method to predict Agricultural CPI

2020 ◽  
Vol 8 (12s3) ◽  
pp. 59-62
Keyword(s):  
Urban Areas ◽  
Price Index ◽  
Consumer Price Index ◽  
Wholesale Price ◽  
Market Value ◽  
Goods And Services ◽  
Consumer Prices ◽  
Wholesale Price Index ◽  
Future Prediction ◽  
The Cost

The growth of any country depends on its economy and economic growth is nothing but an increase in the inflation i.e. adjusted market value of the goods and services produced by an economy over time. Statisticians conventionally measure such inflation using the price indices. They are mainly WPI (Wholesale Price Index and CPI (Consumer Price Index). WPI is now known to be an older method of computation because the main focus has to be on consumer prices.CPI is a measure of consumer prices over a certain period. Changes in the CPI are used to assess price changes associated with the cost of living. It can be calculated for rural, urban areas as well as for both. In CPI rural, the workers and labourers are benefitted as their daily wages can be predicted by this approach. The CPI by state data represents the inflation of each of the states giving a concise view of the country. The data is collected and analysed using a mathematical approach called linear regression in future prediction for rural labours based on previous data.

scholarly journals Törnqvist Formula for Сalculating a Consumer Price Index in Russia: Theory and Practice

2020 ◽  
Vol 27 (5) ◽  
pp. 87-94
Author(s):  
М. A. Kozlova
Keyword(s):  
Price Index ◽  
Empirical Studies ◽  
Consumer Price Index ◽  
Theory And Practice ◽  
Consumer Market ◽  
Country Level ◽  
Consumer Prices ◽  
Realistic Description ◽  
The Difference ◽  
Main Consumer

The article reflects the author’s position on the adjustment of the so-called substitution bias, which affects the value of the consumer price index, currently calculated using the Laspeyres formula. The author proposes a solution to the problem of the adequacy of statistical measurements of the dynamics of consumer prices in the case when, as a result of changing cost of the consumer basket, a buyer replaces a relatively expensive product with a relatively cheaper one. This solution is based on the existing index construction methodology (axiomatic, economic and stochastic approaches). The article substantiates the use of the Törnqvist formula, which has better properties in comparison with other formulae used in the construction of superlative indices. The authors calculated the Törnqvist price index for Russia based on Rosstat methodology and data using country-level quarterly group price indices and shares of consumer spending. To evaluate the results of empirical testing Laspeyres price index was compiled using the same quarterly data as the Törnqvist index. The values of the Törnqvist price index in most cases are less than the price dynamics obtained according to the Laspeyres formula. This conclusion is proved both theoretically and empirically, and it is confirmed for Russia as well. However, due to the non-observance of the conditions of smooth trends in consumer prices, the difference between the values of the Törnqvist and Laspeyres indices is significantly larger in certain quarters than that presented in empirical studies in other countries. Consumer price index, calculated using the Törnqvist formula, in the system of indicators of price statistics in Russia can be defined as an indicator that specifies the main consumer price index. Calculation of its value is necessary for a more realistic description of the processes taking place in the consumer market.

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.

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