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 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 Index Number Issues in the Consumer Price Index

1998 ◽  
Vol 12 (1) ◽  
pp. 47-58 ◽  
Author(s):  
W. Erwin Diewert
Keyword(s):  
Price Index ◽  
Inflation Rate ◽  
Consumer Price Index ◽  
Index Number ◽  
Cost Of Living ◽  
Fixed Base ◽  
Statistical Agencies ◽  
Cost Of Living Index ◽  
Theoretical Cost

This paper addresses the following issues: what is an appropriate theoretical consumer price index that statistical agencies should attempt to measure; what are some of the possible sources of biases between the fixed base Laspeyres price index that statistical agencies produce and the theoretical cost-of-living index; and what factors will make the biases larger or smaller and how will the biases change as the general inflation rate changes? This paper addresses all of the issues mentioned above and discusses what statistical agencies can do to reduce the biases.

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.

Preisindex versus Lebenshaltungskosten index: Substitutionseffekte und ihre Messung / Consumer Price Index versus Cost of Living Index: Substitution Effects and their Measurement

1998 ◽  
Vol 217 (1) ◽  
Author(s):  
Werner Neubauer
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Substitution Effects ◽  
Cost Of Living ◽  
Cost Of Living Index

ZusammenfassungDie „Boskin-Kommission“ hat die Ersetzung des amerikanischen Konsumentenpreisindex (CPI) (Form Laspeyres) durch einen Lebenshaltungskostenindex empfohlen, leider jedoch kein wirklichkeitsadäquates Konzept eines Lebenshaltungskostenindex entwickelt. So empfiehlt sich am Ende doch das Festhalten an einem „echten Preisindex“ (d.h. einem Index, der die Preisentwicklung isoliert). In jedem Falle existiert das Problem der Messung von Substitutionseffekten, sofern sie auftreten. Die herkömmliche Methode der „Kompromißbildung“ zwischen der Gewichtung der Basisperiode und der Berichtsperiode ist aus mehreren Gründen unbefriedigend. Eine in der Literatur wenig beachtete Möglichkeit sind Indexformen mit impliziter Preiselastizität der Mengennachfrage von - 1, d.h. Indizes - arithmetische, harmonische, geometrische - mit konstanten Wertgewichten.

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.

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