It is suggested that instead of attempting to adjust the consumer price index (CPI) after tax reform it is better to measure changes in after-tax income.

On October 6, 1979, the Federal Open Market Committee of the Federal Reserve System embarked on an aggressive policy to lower the inflation rate, which then stood near 12 percent. That effort succeeded: By the mid-1980s, the rate of change in the Consumer Price Index (CPI) was reduced to less than 4 percent on a three-year moving-average basis, as shown in figure 1. The commonly reported measur...

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Consumer Price Index (CPI) of a particular region is primarily calculated through aggregation of individual household observations. This aggregation is done following two schemes, plutocratic and democratic. While both of them are useful for certain purposes, none of them actually give proper attention to poor households. In this study, we have shown that weighting scheme with certain mathemati...

This paper estimates the importance of network effects in the market for Yellow Pages. I estimate three simultaneous equations: consumer demand for usage of a directory, advertiser demand for advertising and a publisher’s first-order condition (derived from profitmaximizing behavior). Estimation shows that advertisers value consumer usage and that consumers value advertising, implying a network...

Little research has been dedicated to examine the effect of expert opinion on consumer demand for goods with credence attributes. Taking advantage of a natural experiment, we use differencein-differences approach to estimate the effect of the NuVal score, an expert opinion of the healthfulness of the food product, on consumer demand. Our results show that posting the NuVal score increases yogur...

Use of disappearance data as proxies for actual consumption causes inconsistent estimates of own-price retail demand elasticities. A system of equations describing consumer, processor, and producer behavior is used to consistently estimate the retail demand elasticity for beef using available data while avoiding the restrictive assumption of fixed input proportions implicit in disappearance dat...

The purpose of this research effort is to apply Task-Technology Fit (TTF) theory to understand how to effectively support experiential consumer tasks. A 2x2 experiment was designed to consider fit issues related to task characteristics (task type: search vs. experiential) and technology characteristics (interface structure: search-oriented vs. experiential-oriented) along with individual charac...

Airfares are determined by both intertemporal price discrimination and dynamic adjustment to stochastic demand. I estimate a model of dynamic airline pricing accounting for both forces with new flight-level data. With model estimates, I disentangle key interactions between the arrival pattern of consumer types and remaining capacity under stochastic demand. I show that the forces are complement...