Final Report Of The Advisory Commission To Study The Consumer Price Index

Download or read book Final Report of the Advisory Commission to Study the Consumer Price Index written by United States. Congress. Senate. Advisory Commission to Study the Consumer Price Index and published by DIANE Publishing. This book was released on 1998-05 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discusses budgetary implications of changes in the Consumer Price Index (CPI) overstating changes in the cost of living. Presents an overview of the CPI, details why it is not a true cost of living index, & discusses substitution bias. Describes procedures employed to adjust for quality change, presents a survey of studies & the Commission's judgment on the bias from quality change & new products, & summarizes findings on the size of the bias. Discusses the issue of separate price indexes for different groups & of aspects of quality of life that fall outside the market based consumption focus of cost-of-living measures.