Similar Search Results

Sources of Bias and Solutions to Bias in the CPI

Hausman, Jerry A. - 2021

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). (1) Introduction of new goods creates a first order effect of new good bias' (2 …

Persistent link: https://www.econbiz.de/10013225936

Assessing the Bias in the Consumer Price Index from Survey Data

Krueger, Alan B.; Siskind, Aaron - 2021

This paper compares self-reported changes in families' financial status to actual changes based on annual time-series data calculated from the PSID. The results indicate that the Consumer Price Index does a reasonably accurate job reconciling self-reported changes in financial status with...

Persistent link: https://www.econbiz.de/10013246991

Are Engel Curve Estimates of CPI Bias Biased?

Logan, Trevon - 2008

A recent literature has advanced the use of Engel curves to estimate overall CPI bias. In this paper, I show that the … methodology is sensitive to the modeling of household demography. Existing estimates of CPI bias do not account for the changing … effect of household size on budget shares, and this can lead to omitted variable bias. Since the effect of household size on …

Persistent link: https://www.econbiz.de/10012772364

What is the Price of Tea in China? Towards the Relative Cost of Living in Chinese and U.S. Cities

Feenstra, Robert C. - 2017

We examine the price and variety of products at the barcode level in cities within China and the United States. In both countries, there is a greater variety of products in larger cities. But in China, unlike the United States, the prices of products tend to be lower in larger cities. We...

Persistent link: https://www.econbiz.de/10012963166

A State and Local Consumer Price Index for the United States in 1890

Haines, Michael R. - 2021

This paper estimates a cost of living index for 39 states of the United States and the District of Columbia, as well as for 70 individual cities and towns, for the year 1890. It gives an overall index in addition to seven commodity subindices (food, clothing, housing, fuel and lighting,...

Persistent link: https://www.econbiz.de/10013220826

On the Instability of Variance Decompositions of the Real Exchange Rate Across Exchange-Rate-Regimes : Evidence from Mexico and the United States

Mendoza, Enrique G. - 2021

Variance decompositions of the Mexico-United States real exchange rate are examined using monthly data on consumer prices and the nominal exchange rate for the period January, 1969 to February, 2000. The results show that the robust result found in industrial-country data that most of the...

Persistent link: https://www.econbiz.de/10013237548

State-Dependent or Time-Dependent Pricing : Does it Matter for Recent U.S. Inflation?

Klenow, Peter J.; Kryvtsov, Oleksiy - 2021

Inflation equals the product of two terms: an extensive margin (the fraction of items with price changes) and an intensive margin (the average size of those price changes). The variance of inflation over time can be decomposed into contributions from each margin. The extensive margin figures...

Persistent link: https://www.econbiz.de/10013243659

Are Poor Cities Cheap for Everyone? Non-Homotheticity and the Cost of Living Across U.S. Cities

Handbury, Jessie - 2020

This paper shows that the products and prices offered in markets are correlated with local income-specific tastes. To quantify the welfare impact of this variation, I calculate local price indexes micro-founded by a model of non-homothetic demand over thousands of grocery products. These indexes...

Persistent link: https://www.econbiz.de/10012845502

Inflation with Covid Consumption Baskets

Cavallo, Alberto - 2020

The Covid-19 Pandemic has led to changes in consumer expenditure patterns that can introduce significant bias in the …

Persistent link: https://www.econbiz.de/10012831285

The Broadband Bonus : Accounting for Broadband Internet's Impact on U.S. GDP

Greenstein, Shane M. - 2013

How much economic value did the diffusion of broadband create? We provide benchmark estimates for 1999 to 2006. We observe $39 billion of total revenue in Internet access in 2006, with broadband accounting for $28 billion of this total. Depending on the estimate, households generated $20 to $22...

Persistent link: https://www.econbiz.de/10012753209