Due to outdated weighting information, a Laspeyres-based consumer price index (CPI) is prone to accumulating upward bias. Therefore, the present study introduces and examines simple and transparent revision approaches that retrospectively address the source of the bias. They provide a consistent...

A chained price index is said to suffer from chain drift bias if it indicates an overall price change, even though the prices and quantities in the current period have reverted back to their levels of the base period. The empirical relevance of this bias is well documented in studies that apply...

ABSTRACT The present paper shows that product‐specific spatial price variation usually causes the Country‐Product‐Dummy (CPD) method to be biased. In cases where it is not, the CPD method is still inefficient and statistical inference is invalid. The paper develops a non‐linear...