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Potenziale und Grenzen eines nutzenbasierten ökonomischen Leitbildes für die amtliche Inflationsmessung / What Role Should Economic Reasoning Play in the Compilation of the Official Consumer Price Index?

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  • Auer Ludwig von

    (Otto-von-Guericke-Universität Magdeburg, Fakultät für Wirtschaftswissenschaft, Postfach 4120, D-39016 Magdeburg, Germany)

Abstract

This paper addresses the question, What role should economic reasoning play in the compilation of the official consumer price index (CPI) ? It is argued that economic theory has developed some extremely helpful techniques such as the economic cost of living index (COLI). However, by contending that the COLI should provide the only conceptual framework for a CPI, too much is expected from it. The COLI’s theoretical and practical limitations require us to find supplementary guidance outside the COLI framework. Furthermore, a consistent, fast, and reliable computational method for a COLI is not yet in sight. Therefore, the CPI must be computed by some sort of statistical price index (SP).

Suggested Citation

  • Auer Ludwig von, 2005. "Potenziale und Grenzen eines nutzenbasierten ökonomischen Leitbildes für die amtliche Inflationsmessung / What Role Should Economic Reasoning Play in the Compilation of the Official Consumer Price Ind," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(3), pages 283-302, June.
    • Handle: RePEc:jns:jbstat:v:225:y:2005:i:3:p:283-302
    DOI: 10.1515/jbnst-2005-0304
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    References listed on IDEAS

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    3. Auer Ludwig von, 2004. "Consistency in Aggregation / Aggregationskonsistenz," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 224(4), pages 383-398, August.
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    5. Triplett, Jack E, 2001. "Should the Cost-of-Living Index Provide the Conceptual Framework for a Consumer Price Index?," Economic Journal, Royal Economic Society, vol. 111(472), pages 311-334, June.
    6. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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