Skip to main content

Measuring the substitution bias in Japan: the demand system approach and a superlative index

Buy Article:

$51.63 plus tax (Refund Policy)


This study estimates the demand system using Japanese micro data and calculates the cost of living index (COLI) to assess the substitution bias in the Consumer Price Index. The estimated bias during the sample period of 1982-2000 is about 0.06 percentage points, which is larger than the estimates calculated from a superlative index. The difference between the COLI and a superlative index can be explained with the upward movements of the average utility level in Japan, since the cost of living for the rich has grown more rapidly than that for the poor.

Document Type: Research Article


Affiliations: Faculty of Economics, Kyoto University, Kobe, Hyogo, Japan

Publication date: July 1, 2008

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more