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The bias of the cpi: a critical discussion of the Boskin-report

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  • C.K. Folkertsma

Abstract

This report provides a critical review of the Boskin-report and discusses possible implications for the cpi in the Netherlands. Moreover, two recent American suggestions to reduce the bias are discussed. The report concludes that although it is likely that the cpi overestimates the increase of the cost of living, the Boskin-commission provides insufficient empirical support for the quantification of the measurement error. Finally, the Boskin-commission made several suggestions to improve the cpi, but there are some unoesolved practical issues, which will hamper the implementation of some of the suggestions.

Suggested Citation

  • C.K. Folkertsma, 1997. "The bias of the cpi: a critical discussion of the Boskin-report," WO Research Memoranda (discontinued) 505, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:wormem:505
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    File URL: https://www.dnb.nl/binaries/wo0505_tcm46-145855.pdf
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