Towards an Applicable True Cost-of-Living Index that Incorporates Housing
A dynamic model of consumer behavior that incorporates the demand for housing is specified such that it is consistent with the general purpose of a consumer price index. From this model a true cost-of-living index that includes housing is derived. Being an ideal index it cannot be computed without imposing additional assumptions about the behavior of the consumer, but it is possible to draw conclusions about the prices and weights that should be used in conventional approximations to such an ideal index.
|Date of creation:||05 Nov 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
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