EconPapers    
Economics at your fingertips  
 

The Plutocratic Bias in the CPI: Evidence from Spain

Eduardo Ley, Javier Ruiz Castillo and Mario Izquierdo ()
Authors registered in the RePEc Author Service: Javier Ruiz-Castillo ()

No 2000/167, IMF Working Papers from International Monetary Fund

Abstract: We define the plutocratic bias as the difference between inflation measured according to the current official CPI and a democratic index in which all households receive the same weight. We estimate that during the 1990s the plutocratic bias in Spain amounts to 0.055 percent per year. However, positive and negative biases cancel off when averaging over the whole period. The mean absolute bias is significantly larger, 0.090. We can explain most of the oscillations experimented by the plutocratic bias by the price behavior of three goods: a luxury good and two necessities.

Keywords: WP; least squares; luxury good; Consumer price index; cost-of-living index; aggregation; plutocratic bias; United States CPI; commodity space; Laspeyres price indexes representative; CPI system; household expenditure; Consumer price indexes; Inflation; Price indexes; Household consumption; Total expenditures (search for similar items in EconPapers)
Pages: 25
Date: 2000-10-01
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=3823 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Working Paper: The plutocratic bias in the CPI: Evidence from Spain 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:imf:imfwpa:2000/167

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().

 
Page updated 2022-09-28
Handle: RePEc:imf:imfwpa:2000/167