Price Index Concepts and Measurement

Name: Price Index Concepts and Measurement
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W. Erwin Diewert · John Greenlees · Charles R. Hulten

Feb 2010 · National Bureau of Economic Research Studies in Income and Wealth Ibhuku elingu-70 · University of Chicago Press

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Although inflation is much feared for its negative effects on the economy, how to measure it is a matter of considerable debate that has important implications for interest rates, monetary supply, and investment and spending decisions. Underlying many of these issues is the concept of the Cost-of-Living Index (COLI) and its controversial role as the methodological foundation for the Consumer Price Index (CPI).

Price Index Concepts and Measurements brings together leading experts to address the many questions involved in conceptualizing and measuring inflation. They evaluate the accuracy of COLI, a Cost-of-Goods Index, and a variety of other methodological frameworks as the bases for consumer price construction.

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W. Erwin Diewert is professor in the Department of Economics at the University of British Columbia and a research associate of the National Bureau of Economic Research.

John Greenlees is a Research Economist and former Associate Commissioner for Prices and Living Conditions at the Bureau of Labor Statistics.

Charles R. Hulten is professor of economics at the University of Maryland and a research associate of the National Bureau of Economic Research.

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