An Experimental Component Index for the CPI: From Annual Computer Data to Monthly Data on Other Goods

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An Experimental Component Index for the CPI: From Annual Computer Data to Monthly Data on Other Goods

The CPI component indices are obtained from comparing price quotes at a given store in different periods. If we omit comparisons from goods in the store in the initial, but not in the comparison, period we generate a selection bias: goods that exit are disproportionately obsolete goods that have falling prices. Building on Pakes (2003), we explain why standard hedonic predictions for second-per...

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Until recently the Consumer Price Index consisted solely of “matched model” component indexes. The latter are constructed by BLS personnel who visit stores and compare prices of goods with the same set of characteristics over successive periods. This procedure is subject to a selection bias. Goods that were not on the shelves in the second period, and hence whose price comparisons were discarde...

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ژورنال

عنوان ژورنال: American Economic Review

سال: 2011

ISSN: 0002-8282

DOI: 10.1257/aer.101.5.1707