Does One Size Fit All? The CPI and Canadian Seniors

Bibliographic Data

ID11966902
AuthorsMatthew Brzozowski (Department of EconomicsThe University of Western OntarioLondon, Ontario, corresponding author)
Year2006
Volume32
Issue4
Pages387-411
Publication date2006-12-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueCanadian Public Policy (JOURNAL)
Journal identifiersISSN: 0317-0861 • E-ISSN: 1911-9917
PublisherUniversity of Toronto Press Inc. (UTPress) (PUBLISHER)
DOI10.3138/0xt7-p31r-p07r-7426
OpenAlexW2083672867
LanguageEN
Citations received2
References cited12

The paper shows that the consumer price index (CPI) is often a very poor measure of inflation rates relevant to individual senior households. A high proportion of the inflation rates measured by household-specific price indexes falls more than one percentage point above or below the CPI inflation rate. Moreover, I use the Engel method proposed by Hamilton and Costa and demonstrate that the CPI inflation rate overestimated the average inflation rate faced by Canadian senior households during the 1970s and the 1980s but has accurately measured average inflation for such households during the 1990s. Finally, I estimate costs of overstating inflation adjustments to Canada Pension Plan

Consumer price index (South Africa · Cost of living · Econometrics · Economics · Index (typography · Inflation (cosmology · Inflation rate · Macroeconomics · Monetary economics · Monetary policy · Percentage point · Point (geometry · Price index · Price level · Producer price index · Real interest rate · Wholesale price index · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Housing Market and Economics · Mathematics · Finance

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