The bias to price indexes
from offshoring is one of several measurement problems arising from the growth of globalization that were examined in conference research.
Recently, Triplett (2001, F331) had strongly contended that "the theory of the cost-of-living index does provide the underlying conceptual rationale for constructing a practical CPI." Furthermore, using the Laspeyres price index (or other fix-basket price indexes
) in constructing a CPI will cause substitution bias in measurement.
Several widely used price indexes
are discussed, and the author presents evidence that favors one particular index.
''From this experience, rice prices are expected to stay high until the fall of next year and may serve as a factor that pushes up the price indexes
until the middle of 2004,'' an official at the Cabinet Office said.
A category inflation index reflects the inflation that occurs in the BLS price indexes
for a selected BLS category (or, if applicable, a BLS category group).
One important use of price indexes
is in the determination of monetary (and possibly fiscal) policy.
However, to the best of my knowledge, this is the first study to discuss output and input price indexes
with particular attention to the market setting in which such indexes are embedded.
import and export price indexes
to adjust for inflation.
These differences are then multiplied by the growth rates in the corresponding item price indexes
to yield percentage-point contributions; that is, the weight effect is computed as
1.472-8 eliminates the requirement to convert published price indexes
into either retail price indexes
or cost price indexes
On the negative side, I am concerned that the publication of two different price indexes
as part of the CPI program might generate some confusion.
But, how might we assess the accuracy of widely used price indexes
, such as the Producer Price Index (PPI)?