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Outlet types and the Canadian Consumer Price Index

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  • Alan G. White

Abstract

Recent phenomenal growth in popularity of large warehouse/discount stores has important implications for price measurement. Consumer substitution to such outlets could produce a bias in consumer price indexes (CPIs), which may be exacerbated by unrepresentative sampling and discount outlets" apparent slower rates of price increases. It is shown that in 1990-96 unit value indexes rose at a lower rate than the corresponding Canadian CPI subaggregate indexes for other household equipment, non-prescribed medicines, and audio equipment, and biases arising from unrepresentative sampling and differential rates of price increases across outlets have resulted in an additional overstatement for these subaggregates.

Suggested Citation

  • Alan G. White, 2000. "Outlet types and the Canadian Consumer Price Index," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 488-505, May.
  • Handle: RePEc:cje:issued:v:33:y:2000:i:2:p:488-505
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    Citations

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    Cited by:

    1. Timothy K.M. Beatty & Erling Røed Larsen, 2005. "Using Engel curves to estimate bias in the Canadian CPI as a cost of living index," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 482-499, May.
    2. Andreas Benedictow & Pål Boug, 2017. "Calculating the real return on a sovereign wealth fund," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(2), pages 571-594, May.
    3. Grenier, Gilles, 2003. "En quelle année vaut-il mieux être né? Les revenus des hommes et des femmes au Canada pendant un quart de siècle," L'Actualité Economique, Société Canadienne de Science Economique, vol. 79(3), pages 245-276, Septembre.
    4. Pål Boug, 2017. "Exact and inexact decompositions of international price indices," Discussion Papers 868, Statistics Norway, Research Department.
    5. Andreas Benedictow & Pål Boug, 2022. "Exact and inexact decompositions of trade price indices," Empirical Economics, Springer, vol. 62(4), pages 1981-1994, April.
    6. John S. Greenlees & Robert McClelland, 2011. "New Evidence on Outlet Substitution Effects in Consumer Price Index Data," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 632-646, May.

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