Calculating the Candy Price Index: A Classroom Inflation Experiment
AbstractIn this classroom experiment, students develop a price index based on candy-purchasing decisions made by members of their class. They use their index to practice calculating inflation rates and to consider the strengths and weaknesses of the consumer price index (CPI). Instructors can use the experiment as an introduction to the topic of inflation and how it is measured. The exercise also provides a concrete example of the sources of bias in the CPI, promoting discussion of the measures the Bureau of Labor Statistics has taken to reduce bias. The experiment, including follow-up discussion, fits into a 50-minute class period. The authors and other professors have used the exercise in introductory and intermediate macroeconomics courses, in classes of 10 to 135 students.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of Economic Education.
Volume (Year): 34 (2003)
Issue (Month): 3 (January)
Contact details of provider:
Web page: http://www.tandfonline.com/VECE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- David T. Mitchell & Robert P. Rebelein & Patricia H. Schneider & Nicole B. Simpson & Eric Fisher, 2009.
"A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity,"
The Journal of Economic Education,
Taylor & Francis Journals, vol. 40(2), pages 150-165, April.
- Mitchell, David & Rebelein, Robert P. & Schneider, Patricia & Simpson, Nicole B. & Eric Fisher, . "A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity," Vassar College Department of Economics Working Paper Series 87, Vassar College Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.