Substitution Bias and Cost of Living Variability for U.S. Demographic Groups
Little Evidence Is Found That Group‐specific Fixed Weight Indexes Are Better than the Consumer Price Index
Bibliographic Data
| ID | 9533574 |
|---|---|
| Authors | Steven A Cobb, Steven Cobb (Xavier University, corresponding author) |
| Year | 1991 |
| Volume | 50 |
| Issue | 1 |
| Pages | 85-97 |
| Publication date | 1991-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | American Journal of Economics and Sociology (JOURNAL) |
| Journal identifiers | ISSN: 0002-9246 • E-ISSN: 1536-7150 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1536-7150.1991.tb02493.x |
| OpenAlex | W1547783666 |
| Language | EN |
| References cited | 9 |
A bstract . Intertemporal cost of living variability is analyzed for households with differing income levels and family characteristics. These indexes are based upon the parameter estimates of a comprehensive system of expenditure equations, the quadratic expenditure system. Despite considerable differences in the group‐specific share parameters as well as nonlinearities in the Engle curves for each group, little variation occurs in these indexes for several U.S. price series over the 1967–1984 time period. As a result, we find little evidence that group‐specific fixed weight indexes are better cost of living approximations than a general Consumer Price Index even though all substitution bias estimates, by income and household type, are quite small
Cost of living · Demographic economics · Econometrics · Economics · Index (typography · Macroeconomics · Price index · Quadratic equation · Standard of living · Statistics · Substitution (logic · Economics of Agriculture and Food Markets · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |