IDEAS home Printed from https://ideas.repec.org/p/cid/wpfacu/42.html
   My bibliography  Save this paper

Alternative Consumer Price Indexes for Mexico

Author

Listed:
  • Carlos Guerrero de Lizardi

Abstract

The Consumer Price Index is a Laspeyres index which uses a plutocratic aggregate method. The Mexican CPI is not an exception. This paper has three purposes. The first purpose is to assemble a democratic CPI. The second purpose is to construct an alternative one using the median of the expenditure distribution. The third purpose is to compile price indexes for each one of the ten expenditure deciles. The concern about the use of a single price measurement has tremendous policy implications. In the last part the empirical results are analyzed in terms of the political economy of price measurement and in terms of the history of the monetary policy.

Suggested Citation

  • Carlos Guerrero de Lizardi, 2010. "Alternative Consumer Price Indexes for Mexico," CID Working Papers 42, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:42
    as

    Download full text from publisher

    File URL: https://www.hks.harvard.edu/sites/default/files/centers/cid/files/publications/fellow_graduate_student_working_papers/042.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. S. J. Prais, 1959. "Whose Cost of Living?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 26(2), pages 126-134.
    2. Eduardo Ley, 2005. "Whose inflation? A characterization of the CPI plutocratic gap," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 634-646, October.
    3. Mario Izquierdo & Eduardo Ley & Javier Ruiz-Castillo, 2003. "The Plutocratic Gap in the CPI: Evidence from Spain," IMF Staff Papers, Palgrave Macmillan, vol. 50(1), pages 1-7.
    4. Orazio Attanasio & Erich Battistin & Hidehiko Ichimura, 2007. "What Really Happened to Consumption Inequality in the United States?," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 515-543, National Bureau of Economic Research, Inc.
    5. Robert A. Pollak, 1998. "The Consumer Price Index: A Research Agenda and Three Proposals," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 69-78, Winter.
    6. Javier Ruiz-Castillo & Eduardo Ley & Mario Izquierdo, "undated". "The plutocratic bias in the CPI: Evidence from Spain," Studies on the Spanish Economy 60, FEDEA.
    7. Angus Deaton, 1998. "Getting Prices Right: What Should Be Done?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 37-46, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Guerrero-de-Lizardi, 2015. "An Imperfect Approach for Looking at the Distribution of Financial and Non-Financial Wealth in Mexico 1984-2012," Remef - The Mexican Journal of Economics and Finance, Instituto Mexicano de Ejecutivos de Finanzas. Remef, September.
    2. Carlos Guerrero de Lizardi & Leonardo Lomelí Vanegas, 2017. "Reflexiones teóricas en torno a la propuesta de recuperación del poder de compra del salario mínimo en México," Contaduría y Administración, Accounting and Management, vol. 62(3), pages 958-971, Julio-Sep.
    3. Carlos Guerrero de Lizardi, 2015. "An Imperfect Approach for Looking at the Distribution of Financial and Non-Financial Wealth in Mexico 1984-2012," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 10(2), pages 145-158, Julio-Dic.
    4. Carlos Guerrero de Lizardi & Manuel Lara Caballero, 2011. "Variaciones en la medición estatal de la pobreza por ingresos según índices de precios locales: México 2000-2008," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 51-78, November.
    5. Carlos Guerrero de Lizardi & Leonardo Lomelí Vanegas, 2017. "Theoretical considerations on the proposed of recovery of purchasing power of the minimum wage in Mexico," Contaduría y Administración, Accounting and Management, vol. 62(3), pages 972-984, Julio-Sep.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Constantin Bürgi, 2020. "Consumer Inflation Expectations and Household Weights," Working Papers 2020-002, The George Washington University, Department of Economics, H. O. Stekler Research Program on Forecasting.
    2. repec:ebl:ecbull:v:4:y:2002:i:3:p:1-5 is not listed on IDEAS
    3. Ingvild Almås & Timothy K.M. Beatty & Thomas F. Crossley, 2018. "Lost in Translation: What do Engel Curves Tell us about the Cost of Living?," CESifo Working Paper Series 6886, CESifo.
    4. Goni, Edwin & Lopez, Humberto & Serven, Luis, 2006. "Getting realabout inequality : evidence from Brazil, Colombia, Mexico, and Peru," Policy Research Working Paper Series 3815, The World Bank.
    5. Andrew Dabalen & Isis Gaddis & Nga Thi Viet Nguyen, 2020. "CPI Bias and its Implications for Poverty Reduction in Africa," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(1), pages 13-44, March.
    6. Ruiz-Castillo, Javier & Ley, Eduardo & Izquierdo, Mario, 2002. "Distributional aspects of the quality change bias in the CPI: evidence from Spain," Economics Letters, Elsevier, vol. 76(1), pages 137-144, June.
    7. Morne Oosthuizen, 2013. "Inflation Inequality In South Africa," Working Papers 13158, University of Cape Town, Development Policy Research Unit.
    8. Carlos Garcimartín & Jhonatan Astudillo & André Martínez, 2021. "Inflation and income distribution in Central America, Mexico, Panama, and the Dominican Republic," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 315-339, February.
    9. repec:aru:wpaper:201301 is not listed on IDEAS
    10. Eduardo Ley, 2002. "On Plutocratic and Democratic CPIs," Economics Bulletin, AccessEcon, vol. 4(3), pages 1-5.
    11. Eduardo Ley, 2005. "Whose inflation? A characterization of the CPI plutocratic gap," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 634-646, October.
    12. Michael Grimm & Isabel Günther, 2005. "Inflation Inequality and the Measurement of Pro-Poor Growth," Working Papers DT/2005/08, DIAL (Développement, Institutions et Mondialisation).
    13. Panayiota Lyssiotou, 2003. "On estimating the cost of characteristics indices from consumer demand analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(2), pages 326-349, May.
    14. Gaddis,Isis, 2016. "Prices for poverty analysis in Africa," Policy Research Working Paper Series 7652, The World Bank.
    15. Agnieszka Leszczynska & Aleksandra Halka, 2012. "What does the Consumer Price Index Measure? Bias Estimates for Poland," EcoMod2012 4370, EcoMod.
    16. Marshall Reinsdorf & Jack E. Triplett, 2009. "A Review of Reviews: Ninety Years of Professional Thinking About the Consumer Price Index," NBER Chapters, in: Price Index Concepts and Measurement, pages 17-83, National Bureau of Economic Research, Inc.
    17. Jorge Duran & Omar Licandro, 2015. "Is the output growth rate in NIPA a welfare measure?," Discussion Papers 2015/18, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    18. Okidi, John A. & Nsubuga, Vincent, 2010. "Inflation Differentials Among Ugandan Households: 1997 - 2007," Research Series 150482, Economic Policy Research Centre (EPRC).
    19. Petr Janský & Pavel Hait, 2016. "Inflation Differentials among Czech Households," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(1), pages 71-84.
    20. Shiratsuka, Shigenori, 1999. "Measurement Errors in the Japanese Consumer Price Index," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 17(3), pages 69-102, December.
    21. Arden Finn & Murray Leibbrandt & Morné Oosthuizen, 2014. "Poverty, Inequality, and Prices in Post-Apartheid South Africa," WIDER Working Paper Series wp-2014-127, World Institute for Development Economic Research (UNU-WIDER).
    22. Dilip M. Nachane & Aditi Chaubal, 2017. "The Plutocratic Bias in the Indian CPI," Working Papers id:12106, eSocialSciences.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cid:wpfacu:42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chuck McKenney (email available below). General contact details of provider: https://edirc.repec.org/data/ciharus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.