The Chinese consumer price index slightly overstates the increase in the cost of living and thus understates the growth in real income. Over the period 1995 to 2002, we nd that the annual growth in median urban household income de ated by the cost of living was 7%, which is close to the growth...

A predictive model that is trained with non-randomly selected samples can offer biased predictions for the population. This paper discusses when non-random selection is a problem. For the applications in which it is a problem, this paper presents a procedure for adjusting the predictions of...

A heterogeneous-firm trade model can explain the recent decrease in exchange rate pass-through to aggregate U.S. import prices as a result of decreased trade costs. A decrease in trade costs enables lower-productivity firms to begin exporting. The recent decrease in the responsiveness of U.S....