The substitution bias of the consumer price index

Research, Preprint English OPEN
Frenger, Petter;
  • Publisher: Oslo: Statistics Norway, Research Department
  • Subject: substitution bias | JEL classification: D12 | C43 | D12 | consumer price index (CPI); substitution bias; elasticity of substitution. | consumer price index (CPI) | JEL classification: C43 | Elasticity of substitution | Laspeyres consumer price index | Konsumprisindeksen (KPI) | elasticity of substitution.
    • jel: jel:C43 | jel:D12
      ddc: ddc:330
    arxiv: Computer Science::Computer Science and Game Theory

Abstract: The paper uses elementary consumer theory to propose an inflation independent ratio definition of the substitution bias of the Laspeyres consumer price index, and derives an approximate substitution bias which depends on the size of the price change a... View more
  • References (25)
    25 references, page 1 of 3

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