Using Engel Curves to Estimate the Bias in the Australian CPI∗
نویسنده
چکیده
The Australian CPI is a Laspeyres price index which is subject to a number of wellknown biases. This paper evaluates the performance of the Australian CPI as a true cost of living index by comparing CPI-deflated food Engel curves estimated with the Australian Bureau of Statistics Household Expenditure Surveys. Our findings indicate the Australia CPI overstated changes in the general cost of living by 34% between 1975/76 -2003/04. The CPI was especially inaccurate for single adults and lone mother families. In contrast, the CPI was relatively accurate in measuring changes in the cost of living for two-adult and working families. JEL classifications: C1; C43; D12
منابع مشابه
Using Engel Curves to Estimate CPI Bias for the Elderly
We use shifts in food Engel curves among the U.S. elderly to estimate the extent of Consumer Price Index (CPI) bias specific to this population. Over the last thirty years the share of total expenditure devoted to food has declined more rapidly for elderly-headed households than for other households. This decline is not explained by a more rapid increase in measured total expenditure for the el...
متن کاملEstimating Real Income in the United States from 1888 to 1994: Correcting CPI Bias Using Engel Curves
This paper provides the first estimates of overall CPI bias prior to the 1970s and new estimates of bias since the 1970s. It finds that annual CPI bias was 0.1 percent between 1888 and 1919 and rose to 0.7 percent between 1919 and 1935. Annual CPI bias was 0.4 percent in the 1960s and then rose to 2.7 percent between 1972 and 1982 before falling to 0.6 percent between 1982 and 1994. The finding...
متن کاملTHE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL CPI Bias and Real Living Standards in Russia During the Transition
The economies of the former Soviet Bloc experienced large declines in output during the decade of transition which began with the collapse of the Soviet Union in 1991. Yet there are many reasons to believe that measured output and official deflators provide a poor proxy for the change in real living standards in transition economies. This paper uses the Engel curve methodology recently develope...
متن کاملEffect of Bias in Contrast Agent Concentration Measurement on Estimated Pharmacokinetic Parameters in Brain Dynamic Contrast-Enhanced Magnetic Resonance Imaging Studies
Introduction: Pharmacokinetic (PK) modeling of dynamic contrast-enhanced magnetic resonance imaging (DCE-MRI) is widely applied in tumor diagnosis and treatment evaluation. Precision analysis of the estimated PK parameters is essential when they are used as a measure for therapy evaluation or treatment planning. In this study, the accuracy of PK parameters in brain DCE...
متن کاملThe Relative Improvement of Bias Reduction in Density Estimator Using Geometric Extrapolated Kernel
One of a nonparametric procedures used to estimate densities is kernel method. In this paper, in order to reduce bias of kernel density estimation, methods such as usual kernel(UK), geometric extrapolation usual kernel(GEUK), a bias reduction kernel(BRK) and a geometric extrapolation bias reduction kernel(GEBRK) are introduced. Theoretical properties, including the selection of smoothness para...
متن کامل