Assessing the Bias in the Consumer Price Index from Survey Data

24 Pages Posted: 17 Jul 2000 Last revised: 8 Oct 2010

See all articles by Alan B. Krueger

Alan B. Krueger

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Aaron Siskind

Princeton University - Department of Economics

Date Written: March 1998

Abstract

This paper compares self-reported changes in families' financial status to actual changes based on annual time-series data calculated from the PSID. The results indicate that the Consumer Price Index does a reasonably accurate job reconciling self-reported changes in financial status with measured changes in real income. Earlier work by Nordhaus (1998) reached a different conclusion because it did not account for changes in the shape of the income distribution.

Suggested Citation

Krueger, Alan B. and Siskind, Aaron, Assessing the Bias in the Consumer Price Index from Survey Data (March 1998). NBER Working Paper No. w6450. Available at SSRN: https://ssrn.com/abstract=226196

Alan B. Krueger (Contact Author)

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
United States
609-258-4046 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Aaron Siskind

Princeton University - Department of Economics

Princeton, NJ 08544-1021
United States

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