EconPapers    
Economics at your fingertips  
 

Whose inflation? A characterization of the CPI plutocratic gap

Eduardo Ley

Oxford Economic Papers, 2005, vol. 57, issue 4, 634-646

Abstract: Prais (1958) showed that the standard CPI computed by most statistical agencies can be interpreted as a weighted average of household price indexes, where the weight of each household is determined by its total expenditures. In this paper, we decompose the CPI plutocratic gap--i.e. the difference between the standard CPI and a democratically-weighted index, where each household has the same weight--as the product of expenditure inequality and the sample covariance between the elementary individual price indexes and a term which is a function of the expenditure elasticity of each good. This decomposition allows us to interpret variations in the size and sign of the plutocratic gap, and to discuss issues pertaining to group indexes. Copyright 2005, Oxford University Press.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpi040 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Whose Inflation? A Characterization of the CPI Plutocratic Gap (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:57:y:2005:i:4:p:634-646

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2022-09-24
Handle: RePEc:oup:oxecpp:v:57:y:2005:i:4:p:634-646