Assessing the Bias in the Consumer Price Index from Survey Data
AbstractThis paper compares self-reported changes in families' financial status to actual changes based on annual time-series data calculated from the PSID. The results indicate that the Consumer Price Index does a reasonably accurate job reconciling self-reported changes in financial status with measured changes in real income. Earlier work by Nordhaus (1998) reached a different conclusion because it did not account for changes in the shape of the income distribution.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6450.
Date of creation: Mar 1998
Date of revision:
Publication status: published as Monthly Labor Review, Vol. 121, no. 4 (April 1998): 24-33.
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Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
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- Matthew D. Shapiro & David W. Wilcox, 1996.
"Mismeasurement in the Consumer Price Index: An Evaluation,"
in: NBER Macroeconomics Annual 1996, Volume 11, pages 93-154
National Bureau of Economic Research, Inc.
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