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Alternative Consumer Price Indexes for Mexico

Author

Listed:
  • Carlos Guerrero de Lizardi

Abstract

The Consumer Price Index is a Laspeyres index which uses a plutocratic aggregate method. The Mexican CPI is not an exception. This paper has three purposes. The first purpose is to assemble a democratic CPI. The second purpose is to construct an alternative one using the median of the expenditure distribution. The third purpose is to compile price indexes for each one of the ten expenditure deciles. The concern about the use of a single price measurement has tremendous policy implications. In the last part the empirical results are analyzed in terms of the political economy of price measurement and in terms of the history of the monetary policy.

Suggested Citation

  • Carlos Guerrero de Lizardi, 2010. "Alternative Consumer Price Indexes for Mexico," CID Working Papers 42, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:42
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    References listed on IDEAS

    as
    1. S. J. Prais, 1959. "Whose Cost of Living?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 26(2), pages 126-134.
    2. Eduardo Ley, 2005. "Whose inflation? A characterization of the CPI plutocratic gap," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 634-646, October.
    3. Angus Deaton, 1998. "Getting Prices Right: What Should Be Done?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 37-46, Winter.
    4. Mario Izquierdo & Eduardo Ley & Javier Ruiz-Castillo, 2003. "The Plutocratic Gap in the CPI: Evidence from Spain," IMF Staff Papers, Palgrave Macmillan, vol. 50(1), pages 1-7.
    5. Orazio Attanasio & Erich Battistin & Hidehiko Ichimura, 2007. "What Really Happened to Consumption Inequality in the United States?," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 515-543, National Bureau of Economic Research, Inc.
    6. Robert A. Pollak, 1998. "The Consumer Price Index: A Research Agenda and Three Proposals," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 69-78, Winter.
    7. Javier Ruiz-Castillo & Eduardo Ley & Mario Izquierdo, "undated". "The plutocratic bias in the CPI: Evidence from Spain," Studies on the Spanish Economy 60, FEDEA.
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    Citations

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    Cited by:

    1. Carlos Guerrero de Lizardi & Leonardo Lomelí Vanegas, 2017. "Reflexiones teóricas en torno a la propuesta de recuperación del poder de compra del salario mínimo en México," Contaduría y Administración, Accounting and Management, vol. 62(3), pages 958-971, Julio-Sep.
    2. Carlos Guerrero de Lizardi & Manuel Lara Caballero, 2011. "Variaciones en la medición estatal de la pobreza por ingresos según índices de precios locales: México 2000-2008," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 51-78, November.
    3. Carlos Guerrero de Lizardi & Leonardo Lomelí Vanegas, 2017. "Theoretical considerations on the proposed of recovery of purchasing power of the minimum wage in Mexico," Contaduría y Administración, Accounting and Management, vol. 62(3), pages 972-984, Julio-Sep.
    4. Carlos Guerrero-de-Lizardi, 2015. "An Imperfect Approach for Looking at the Distribution of Financial and Non-Financial Wealth in Mexico 1984-2012," Remef - The Mexican Journal of Economics and Finance, Instituto Mexicano de Ejecutivos de Finanzas. Remef, September.
    5. Carlos Guerrero de Lizardi, 2015. "An Imperfect Approach for Looking at the Distribution of Financial and Non-Financial Wealth in Mexico 1984-2012," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 10(2), pages 145-158, Julio-Dic.

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