14.1 This chapter focuses on the value aggregates for goods and services that relate the major price indices, including the consumer price index (CPI), to one another. The chapter provides a deeper context for the domain of the CPI covered in Chapter 3 and the index weights dealt with in Chapter 4. It also deepens the context for defining the sample unit and the set of products, discussed in Ch...

David S. Johnson, Stephen B. Reed, and Kenneth J. Stewart The report by the U.S. Advisory Commission to Study the Consumer Price Index (known more commonly as the Boskin Report), issued on December 4, 1996, addressed the broad conceptual question of whether a cost-of-living index (COLI) should be the measurement objective of a price index and focused attention on three key problems inherent in ...

We show that deviations from the law of one price in tradable goods are an important source of violations of absolute PPP across countries. Using highly disaggregated export data, we document systematic international price discrimination: at the U.S. dock, U.S. exporters ship the same good to low-income countries at lower prices. This pricing-to-market is about twice as important as any local n...

The seminal work of Engel (1999) establishes a method for measuring the contributions of traded goods and nontraded goods to the fluctuation of real exchange rates. Two difficulties arise: the assumed price aggregation is likely biased, and the needed data on non-traded goods price is often limited. The present work overcomes these difficulties, as follows. First we generalize Engel’s exchange ...

Background: Socioeconomic indicators are the main factors that affect health outcome. Health price index (HPI) and households living costs (HLC) are affected by economic reform. This study aimed at examining the effect of subsidy targeting plan (STP) on HPI and HLC.    Methods: The social accounting matrix was used to study the direct and indirect effects of STP. We chose 11 health r...

The importance of drug as a valuable export product in the global economy becomes more clear every day. Understanding the problems of exports and factors affecting it, can be an important step to keep Iran’s position in the world markets and further export development of this product.In this study, Iranian pharmaceutical exports’ supply and demand functions were calculated using co-integration ...

Many central banks conduct monetary policy according to an inflation targeting framework, which requires that some measure of inflation be chosen as the target. One approach would be to use an index of goods and services whose prices are market determined and not subject to frequent, idiosyncratic, and transitory changes. That could be an index based on the personal consumption expenditures pri...

The importance of drug as a valuable export product in the global economy becomes more clear every day. Understanding the problems of exports and factors affecting it, can be an important step to keep Iran’s position in the world markets and further export development of this product.In this study, Iranian pharmaceutical exports’ supply and demand functions were calculated using co-integration ...

Inclusion of nontraded goods prices has been shown to be partly responsible for slow convergence in price indices across major cities in the United States (Cecchetti et al 2002). Drawing upon insights provided by well known theories, this paper uses panel econometric methods to seek evidence in U.S. city level Consumer Price Index (CPI) data of a systematic long-run relationship between prices ...