The Cost of Living with the RPI
Substitution Bias in the UK Retail Prices Index
Bibliographic Data
| ID | 9716682 |
|---|---|
| Authors | Laura Blow (Institute for Fiscal Studies), Isabel Crawford (0000-0001-5661-7403, Institute for Fiscal Studies), Ian Crawford (0000-0002-4853-3370, Institute for Fiscal Studies and University College London) |
| Year | 2001 |
| Volume | 111 |
| Issue | 472 |
| Pages | 357-382 |
| Publication date | 2001-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00635 |
| OpenAlex | W2079489727 |
| Language | EN |
| Citations received | 1 |
| References cited | 4 |
This paper uses revealed preference restrictions and nonparametric statistical methods to bound the true cost-of-living index which corresponds most closely to the UK Retail Prices Index (RPI). This is used to assess the RPI formula for substitution bias. We show that neither the direction nor the existence of bias in the RPI forumla can be established on a priori theoretical grounds. However, we find empirical evidence of a variable, but generally positive bias in the rate of inflation recorded by the RPI formula
Econometrics · Economics · Index (typography · Price index · Substitution (logic · Computer Science · Economic and Environmental Valuation · Economics of Agriculture and Food Markets · Gender, Labor, and Family Dynamics
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,04 |
| Citation span | 2001 - 2001 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |