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Author: Rachel Griffith Publisher: ISBN: Category : Consumer behavior Languages : en Pages : 42
Book Description
A common approach to measuring price changes is to look at the change of the expenditure needed to purchase a fixed basket of goods. It is well-known that this approach suffers from problems and creates several biases in the measurement of price changes faced by consumers. Substitution and outlet bias, two commonly studied concerns, are both driven by consumer choices of what and where to buy. However, consumers also make other choices, including how much and when to buy. We discuss the implications of consumers' timing and quantity decisions have on standard practices of computing of computing a price index. We use household-level data on quantities purchased and prices paid to construct a measure of the savings made by consumers' optimizing behaviour in the purchase of food. In particular, we compare the prices actually paid by the consumers to various alternatives that do not allow for substitution. Our analysis suggests that the average consumer makes significant, and comparable in magnitude, savings from the four dimensions of choice that we study. Furthermore, our data suggests significant heterogeneity in consumer behavior, and that this behavior is correlated with demographics. Our findings suggest that ignoring timing and quantity decisions, when computing a price index, can generate biases on the order of magnitude of substitution and outlet biases.
Author: Rachel Griffith Publisher: ISBN: Category : Consumer behavior Languages : en Pages : 42
Book Description
A common approach to measuring price changes is to look at the change of the expenditure needed to purchase a fixed basket of goods. It is well-known that this approach suffers from problems and creates several biases in the measurement of price changes faced by consumers. Substitution and outlet bias, two commonly studied concerns, are both driven by consumer choices of what and where to buy. However, consumers also make other choices, including how much and when to buy. We discuss the implications of consumers' timing and quantity decisions have on standard practices of computing of computing a price index. We use household-level data on quantities purchased and prices paid to construct a measure of the savings made by consumers' optimizing behaviour in the purchase of food. In particular, we compare the prices actually paid by the consumers to various alternatives that do not allow for substitution. Our analysis suggests that the average consumer makes significant, and comparable in magnitude, savings from the four dimensions of choice that we study. Furthermore, our data suggests significant heterogeneity in consumer behavior, and that this behavior is correlated with demographics. Our findings suggest that ignoring timing and quantity decisions, when computing a price index, can generate biases on the order of magnitude of substitution and outlet biases.
Author: United States. Congress. Senate. Advisory Commission to Study the Consumer Price Index Publisher: ISBN: Category : Consumer price indexes Languages : en Pages : 212
Author: International Labour Office Publisher: International Labour Organization ISBN: 9789221136996 Category : Business & Economics Languages : en Pages : 578
Book Description
The consumer price index (CPI) measures the rate at which prices of consumer goods and services change over time. It is used as a key indicator of economic performance, as well as in the setting of monetary and socio-economic policy such as indexation of wages and social security benefits, purchasing power parities and inflation measures. This manual contains methodological guidelines for statistical offices and other agencies responsible for constructing and calculating CPIs, and also examines underlying economic and statistical concepts involved. Topics covered include: expenditure weights, sampling, price collection, quality adjustment, sampling, price indices calculations, errors and bias, organisation and management, dissemination, index number theory, durables and user costs.
Author: Brian Graf Publisher: INTERNATIONAL MONETARY FUND ISBN: 9781484354841 Category : Business & Economics Languages : en Pages : 509
Book Description
The Consumer Price Index Manual: Concepts and Methods contains comprehensive information and explanations on compiling a consumer price index (CPI). The Manual provides an overview of the methods and practices national statistical offices (NSOs) should consider when making decisions on how to deal with the various problems in the compilation of a CPI. The chapters cover many topics. They elaborate on the different practices currently in use, propose alternatives whenever possible, and discuss the advantages and disadvantages of each alternative. The primary purpose of the Manual is to assist countries in producing CPIs that reflect internationally recommended methods and practices.
Author: Fouad Sabry Publisher: One Billion Knowledgeable ISBN: Category : Business & Economics Languages : en Pages : 248
Book Description
What is Consumer Price Index According to the Consumer Price Index (CPI), which is a type of price index, the price of a market basket of consumer goods and services that are purchased by households is the price of the market basket. The Consumer Price Index (CPI) is a statistic that tracks changes in prices over time. A representative basket of products and services is utilized in the calculation of the Consumer Price Index (CPI). In order to take into account the shifting patterns of consumer purchasing, the basket is updated on a regular basis. A representative sample of retail and service companies is contacted on a monthly basis to get the pricing of the items and services that are included in the basket. When there is a change in the quality or features, the prices are then modified accordingly. The changes in the Consumer Price Index (CPI) may be utilized to monitor inflation over a period of time and to compare the rates of inflation in other nations. Despite the fact that the Consumer Price Index (CPI) is not an ideal estimator of inflation or the cost of living, it is a helpful instrument for monitoring key economic variables. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Consumer price index Chapter 2: Inflation Chapter 3: GDP deflator Chapter 4: Market basket Chapter 5: Cost-of-living index Chapter 6: Personal consumption expenditures price index Chapter 7: Price index Chapter 8: Substitution bias Chapter 9: Retail Price Index Chapter 10: Harmonised Index of Consumer Prices Chapter 11: Core inflation Chapter 12: United States Consumer Price Index Chapter 13: Consumer Price Index (United Kingdom) Chapter 14: Törnqvist index Chapter 15: Economic indicator Chapter 16: Higher Education Price Index Chapter 17: Divisia index Chapter 18: Consumer price index by country Chapter 19: Indian consumer confidence index Chapter 20: Inflation in India Chapter 21: United States Chained Consumer Price Index (II) Answering the public top questions about consumer price index. (III) Real world examples for the usage of consumer price index in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of consumer price index.
Author: Dean Baker Publisher: M.E. Sharpe ISBN: 9780765602220 Category : Business & Economics Languages : en Pages : 204
Book Description
An introduction to the significance of the debate surrounding the accuracy of the Consumer Price Index. The work presents the full text of the Boskin Commission report (stating that the CPI overstates inflation by 1.1per cent) and discusses the Commission's research methodology and its conclusions.
Author: Peter J. N. Sinclair Publisher: Routledge ISBN: 1135179778 Category : Business & Economics Languages : en Pages : 402
Book Description
Inflation is regarded by the many as a menace that damages business and can only make life worse for households. Keeping it low depends critically on ensuring that firms and workers expect it to be low. So expectations of inflation are a key influence on national economic welfare. This collection pulls together a galaxy of world experts (including Roy Batchelor, Richard Curtin and Staffan Linden) on inflation expectations to debate different aspects of the issues involved. The main focus of the volume is on likely inflation developments. A number of factors have led practitioners and academic observers of monetary policy to place increasing emphasis recently on inflation expectations. One is the spread of inflation targeting, invented in New Zealand over 15 years ago, but now encompassing many important economies including Brazil, Canada, Israel and Great Britain. Even more significantly, the European Central Bank, the Bank of Japan and the United States Federal Bank are the leading members of another group of monetary institutions all considering or implementing moves in the same direction. A second is the large reduction in actual inflation that has been observed in most countries over the past decade or so. These considerations underscore the critical – and largely underrecognized - importance of inflation expectations. They emphasize the importance of the issues, and the great need for a volume that offers a clear, systematic treatment of them. This book, under the steely editorship of Peter Sinclair, should prove very important for policy makers and monetary economists alike.
Author: Rachel Griffith
Author: Rachel Griffith
Author: 
Author: United States. Congress. Senate. Advisory Commission to Study the Consumer Price Index
Author: International Labour Office
Author: United States. Bureau of Labor Statistics
Author: Brian Graf
Author: Fouad Sabry
Author: 
Author: Dean Baker
Author: Peter J. N. Sinclair