IDEAS home Printed from https://ideas.repec.org/p/hit/rcesrs/dp26-8.html

Measuring the Services of Durables and Owner Occupied Housing : A Unified Framework and Forty Years of Tokyo Evidence

Author

Listed:
  • DIEWERT, W. Erwin
  • SHIMIZU, Chihiro

Abstract

Measuring owner-occupied housing services in the CPI is one of the most contested problems in official statistics. We nest five approaches acquisitions, rental equivalence, user cost, financial user cost, and opportunity cost within the identity uₜ = rₜ + c - πₜ. Using 3.1 million Tokyo property records over 1986-2025, we show that conventional measures diverge sharply and can reverse sign across asset-price cycles. The opportunity cost approach eliminates negative user costs in all 480 sample months. The dominant CPI bias source is the price channel procyclical acquisitions and sticky rents not the weight channel. Our findings directly address the Eurostat HICP impasse.

Suggested Citation

  • DIEWERT, W. Erwin & SHIMIZU, Chihiro, 2026. "Measuring the Services of Durables and Owner Occupied Housing : A Unified Framework and Forty Years of Tokyo Evidence," RCESR Discussion Paper Series DP26-8, Research Center for Economic and Social Risks, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:rcesrs:dp26-8
    as

    Download full text from publisher

    File URL: https://hit-u.repo.nii.ac.jp/record/2061806/files/dp26-8_rcesr.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:rcesrs:dp26-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/eshitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.