Assessing Bias in the Consumer Price Index from Survey Data

Author
Keywords
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 (I998) reached a different conclusion because it did not account for
changes in the shape of the income distribution.

Year of Publication
1997
Number
392
Date Published
12/1997
Publication Language
eng
Citation Key
Monthly Labor Review, vol. 121, no. 4, April 1998
URL
Working Papers