Towards A Better CPI – Adjusting for Technological Change and Increased Housing Consumption

69 Pages Posted: 20 Jun 2019 Last revised: 18 May 2020

See all articles by Anthony Cheng

Anthony Cheng

Everascend Footwear

Matthew I. Spiegel

Yale University - Yale School of Management, International Center for Finance

Date Written: October 9, 2019

Abstract

This article looks at modifying the currently reported CPI by the Bureau of Labor Statistics to produce a “better” CPI. Comparisons are based on each alternative index’s ability to produce time series projections in line with measures reflecting changes in short term Treasury bill, consumer borrowing and default rates. Changes suggested include restricting attention to goods with little change in the consumer experience over time, accounting for changes in the housing stock over time, and removing some elements of the CPI that may distort the price series given how they are currently estimated.

Keywords: Consumer price index, housing size

JEL Classification: E01, E31, G21

Suggested Citation

Cheng, Anthony and Spiegel, Matthew I., Towards A Better CPI – Adjusting for Technological Change and Increased Housing Consumption (October 9, 2019). Yale ICF Working Paper No. 2019-13, Available at SSRN: https://ssrn.com/abstract=3403755 or http://dx.doi.org/10.2139/ssrn.3403755

Anthony Cheng

Everascend Footwear ( email )

Hong Kong

Matthew I. Spiegel (Contact Author)

Yale University - Yale School of Management, International Center for Finance ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-6017 (Phone)
203-432-8931 (Fax)

HOME PAGE: http://som.yale.edu/~spiegel

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