Year: 1996
Type: article
Abstract: Recent research has suggested that the upward bias of the U.S. consumer price index may be significant, and correcting the biases would have important long-run effects on the federal budget deficit. The author describes the sampling procedures used in constructing the consumer price index, and gives simple examples of formula bias and quality adjustment. He then reviews the empirical evidence, attempting to show which biases are reliably estimated and which estimates of bias are based on extrapolation and guesswork. The author discusses possibilities for further research leading to potential improvements in the consumer price index.
DOI: 10.1257/jep.10.4.159
Author: Brent R Moulton
Institutions: Bureau of Labor Statistics, United States Department of Labor
Language: English
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W1966359207