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How Well Does the CPI Serve as an Index of Inflation for Older Age Groups?

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Listed:
  • Frank T. Denton
  • Byron G. Spencer

Abstract

The issue of whether the official Statistics Canada Consumer Price Index provides an adequate measure of inflation for the elderly population is investigated. Price indexes are calculated for older households using weights from the Family Expenditure Survey. The indexes are calculated for the period 1949-96 with 11 categories of commodities and services, and for 1979-96 with 26 categories. Separate indexes are calculated for a range of age groups, for three types of households, and for lower-income households as well as households at all income levels combined. In all cases the calculated index series are very close to the official CPI series.

Suggested Citation

  • Frank T. Denton & Byron G. Spencer, 1997. "How Well Does the CPI Serve as an Index of Inflation for Older Age Groups?," Quantitative Studies in Economics and Population Research Reports 329, McMaster University.
    • Handle: RePEc:mcm:qseprr:329
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    References listed on IDEAS

    as
    1. Brent R. Moulton, 1996. "Bias in the Consumer Price Index: What Is the Evidence?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 159-177, Fall.
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    Cited by:

    1. Matthew Brzozowski, 2006. "Does One Size Fit All? The CPI and Canadian Seniors," Canadian Public Policy, University of Toronto Press, vol. 32(4), pages 387-412, December.
    2. Frank T. Denton & Dean C. Mountain & Byron G. Spencer, 2002. "Age, Retirement and Expenditure Patterns: An Econometric Study of Older Canadian Households," Social and Economic Dimensions of an Aging Population Research Papers 82, McMaster University.
    3. Frank Denton & Dean Mountain & Byron Spencer, 2006. "Age, Retirement, and Expenditure Patterns: An Econometric Study of Older Households," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(4), pages 421-434, December.

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    More about this item

    Keywords

    CPI; inflation; older households;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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