CPI Bias from Supercenters: Does the BLS Know that Wal-Mart Exists?

摘要: Hausman (2003) discusses four sources of bias in the present calculation CPI. A pure price' index based approach surveying prices as done by BLS cannot succeed solving problems bias. We discuss economic and econometric approaches to measuring first order effects from outlet substitution demonstrate use scanner data that permits implementation techniques allow problem be solved. In contrast, current procedure does not treat correctly acts if Wal-Mart exist. Yet, offers identical food items at an average price about 15%-25% lower than traditional supermarkets. The links out' Wal-Mart's prices. find a more appropriate analysis is let choice shop considered new good' consumers when enters geographic market. This leads continuously updated expenditure weighted calculation. significant difference between our approach. Our estimates are CPI-U home inflation too high 0.32 0.42 percentage points, which upward estimated rate 15% per year.