|Statement||Matthew D. Shapiro, David W. Wilcox.|
|Series||NBER working paper series -- working paper 5980, Working paper series (National Bureau of Economic Research) -- working paper no. 5980.|
|Contributions||Wilcox, David W., National Bureau of Economic Research.|
|The Physical Object|
|Pagination||26,  p. :|
|Number of Pages||26|
In particular, it shows how to construct an accurate approximation to a superlative price index that can be published with the same timeliness as the CPI. Suggested Citation: Suggested Citation Shapiro, Matthew D. and Wilcox, David W., Alternative Strategies for Aggregating Prices in the CPI Cited by: Downloadable! The Consumer Price Index does not take into account the fact that consumers alter the composition of their purchases in response to changes in relative prices. This substitution effect will cause the CPI to grow faster than the cost of living. This paper presents new estimates showing that this bias in the CPI averaged percentage points per year between December and. Alternative Strategies for Aggregating Prices in the Consumer Price Index by Matthew D. Shapiro and David W. Wilcox This article presents a new estimate of the magnitude of the across-strata effect in the CPI. Alternative strategies for aggregating prices in the CPI - commentary By Peter Howitt Download PDF (52 KB).
Commentary 2 on "Alternative Strategies for Aggregating Prices in the Consumer Price Index" Author: Peter Howitt Subject: Review, Vol. 79, No. 3 Keywords: Federal Reserve Bank of St. Louis, economic research, Peter Howitt Created Date: Z. Alternative strategies for aggregating prices in the CPI - commentary By W. Erwin Diewert Get PDF ( KB). Commentary on "Alternative Strategies for Aggregating Prices in the Consumer Price Index" by Matthew D. Shapiro and David W. Wilcox. Cite this article W. Erwin Diewert, "Commentary 1 on "Alternative Strategies for Aggregating Prices in the Consumer Price Index"," Federal Reserve Bank of St. Louis Review, May/June , pp. “Alternative Strategies for Aggregating Prices in the CPI.” Paper presented at the Conference on Measuring Inflation and Real Growth, Federal Reserve Bank of St. Louis, October. ———. b. “Mismeasurement in the Consumer Price Index: An Evaluation.” National Bureau of Economic Research Macroeconomics Annual
Critics of the consumer price index - the most widely watched inflation measure - contend that it overstates inflation by as much as 1 percentage point a year. Some have argued that alternative indexes eliminate the CPI's upward bias and offer a more accurate reading of inflation levels. The consumer price index (CPI) is a measure of the average change over time in the prices paid by consumers in urban households for a basket of . For approximately 60% of the CPIH and CPI, the geometric mean is used to combine the individual prices at the first stage of aggregation; with a combination of arithmetic mean (ratio of average prices), weighted and other formulae used for the remainder. R-CPI-U-G: Alternative formula: This index, called the research CPI using geometric means (R-CPI-U-G), uses a geometric mean formula for percent of items to combine individual price quotations at the lower level of aggregation while keeping the Laspeyres arithmetic mean formula for higher level aggregation.