Survey-Based Estimates of Biases in Consumer Price Indices During Transition: Evidence from Romania
Posted: 15 Nov 2002
Mismeasurement of inflation is likely to be more severe in a transition economy than in a more stable environment. Comparisons of self-reported changes in economic welfare with changes in incomes suggest that official Romanian inflation measures may be overstated by between 100 and 300 percent at a reported annual inflation rate of 40 per cent.
JEL Classification: C8, E3, P2
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