The cost-of-living index with trade barriers

Preprint OPEN
Thomas von Brasch;
(2013)
  • Subject: Index numbers; Cost-of-living; Price level; Trade barriers
    • jel: jel:C43 | jel:E31 | jel:F14

The standard cost-of-living index hinges on the assumption that there is free trade. Applying it to situations where trade barriers are present yields biased results with respect to a true cost-of-living index. Import price indices are particularly vulnerable to this bi... View more
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