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How Well Does the CPI Serve as an Index of Inflation for Older Age Groups?

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Author Info

  • Frank T. Denton
  • Byron G. Spencer

Abstract

The issue of whether the official Statistics Canada Consumer Price Index provides an adequate measure of inflation for the elderly population is investigated. Price indexes are calculated for older households using weights from the Family Expenditure Survey. The indexes are calculated for the period 1949-96 with 11 categories of commodities and services, and for 1979-96 with 26 categories. Separate indexes are calculated for a range of age groups, for three types of households, and for lower-income households as well as households at all income levels combined. In all cases the calculated index series are very close to the official CPI series.

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Bibliographic Info

Paper provided by McMaster University in its series Quantitative Studies in Economics and Population Research Reports with number 329.

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Length: 30 pages
Date of creation: Jun 1997
Date of revision:
Handle: RePEc:mcm:qseprr:329

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Keywords: CPI; inflation; older households;

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Cited by:
  1. Frank Denton & Dean Mountain & Byron Spencer, 2006. "Age, Retirement, and Expenditure Patterns: An Econometric Study of Older Households," Atlantic Economic Journal, International Atlantic Economic Society, vol. 34(4), pages 421-434, December.
  2. Frank T. Denton & Dean C. Mountain & Byron G. Spencer, 2002. "Age, Retirement and Expenditure Patterns: An Econometric Study of Older Canadian Households," Social and Economic Dimensions of an Aging Population Research Papers 82, McMaster University.

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