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A new consumer price index that incorporates housing

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Author Info

  • Klevmarken, Anders

    ()
    (Olle Grünewald and Henrik Allansson)

Abstract

A long lasting controversy in Sweden as well as internationally is how to best estimate a price on the services of owner occupied housing in a consumer price index. There is no international consensus and different approaches have been adopted. In this paper we use a true cost-of-living index suggested by one of the authors, apply the model to Swedish data and compare the results to the current Swedish CPI. We also show that within the economic model underlying the true cost-of-living index, alternative operationalizations of the index give rather different results. The choice between these alternatives depends upon the primary purpose of the index.

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File URL: http://uu.diva-portal.org/smash/get/diva2:277429/FULLTEXT01.pdf
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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2009:15.

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Length: 27 pages
Date of creation: 18 Nov 2009
Date of revision:
Publication status: Published as Klevmarken, Anders, 'A new consumer price index that incorporates housing' in Journal of Economic and Social Measurement , 2012, pages 177-276.
Handle: RePEc:hhs:uunewp:2009_015

Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Related research

Keywords: Price index; cost-of-living index; compensation index; price of housing services;

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