More on Inflation, Productivity and Output in Transition : Comment and Response

In this paper we comment on Filer and Hanousek's methodology and conclusions about potential mismeasurement of inflation in the Czech Republic. Specifically, we believe that their procedure assumes away most of the efforts by the Czech Statistical Office to take these sources of bias into account. We also question the way in which they seek to extend their results to other transition economies. Finally, we respond to some concerns they raise regarding our own results