An Experimental Component Index for the CPI: From Annual Computer Data to Monthly Data on Other Goods

S-Tier
Journal: American Economic Review
Year: 2011
Volume: 101
Issue: 5
Pages: 1707-38

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The CPI component indices are obtained from comparing price quotes at a given store in different periods. If we omit comparisons from goods in the store in the initial, but not in the comparison, period we generate a selection bias: goods that exit are disproportionately obsolete goods that have falling prices. Building on Pakes (2003), we explain why standard hedonic predictions for second-period prices of exiting goods do not account for this bias. New hedonic methods are derived, shown to have desirable properties, and are applied to three CPI samples where they generate significant selection corrections. (JEL C43, E31)

Technical Details

RePEc Handle
repec:aea:aecrev:v:101:y:2011:i:5:p:1707-38
Journal Field
General
Author Count
2
Added to Database
2026-01-28