Title
Assessing Bias in the Consumer Price Index from Survey Data
Author(s)
Alan B. Krueger Alan Krueger (Princeton University and NBER)
Aaron Siskind Aaron Siskind (Princeton University)
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.
Creation Date
1997-12
Section URL ID
IRS
Paper Number
392
URL
https://dataspace.princeton.edu/bitstream/88435/dsp01m613mx57z/1/392.pdf
File Function
Jel
F12
Keyword(s)
consumer price index, CPI, real income, PSID, Panel Study of Income Dynamics
Suppress
false
Series
1