Measuring a Dynamic Price Index Using Consumption Data

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Abstract:

We propose a new method of constructing a dynamic price index (DPI). Under standard assumptions, our DPI is as stable as the Consumer Price Index (CPI). In certain periods, the DPI differs sharply from the CPI.

Keywords: C43; CPI; D91; E31; cost of living; dynamic price index

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1538-4616.2010.00315.x

Affiliations: Shuhei Aoki is a Junior Research Fellow, National Institute for Research Advancement, 4-20-3 Ebisu, Shibuya-ku, Tokyo 150-6034, Japan (  )., Email: shuhei_aoki@mail.goo.ne.jp

Publication date: August 1, 2010

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