Mismeasurement of the CPI

Kenn Ariga and Kenji Matsui

No 9436, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we investigate several key problems in Japanese economic statistics. We use CPI mismeasurements and biases as an example to explore the roots of the problems and also to offer guidelines for improvements. We emphasize 3 major shortcomings shared by many official statistics in Japan: (1) long delays in adjustments, (2) lack of proper coordination, and 3) insufficient information disclosure. In the analysis of CPI bias, we limit our focus to potential biases due to aggregation, survey methodology and sample selection procedures. We estimate that, in recent years, the commodity CPI inflation rate is biased upward by at least 0.5% per year, even if we assume away the potential bias associated with the quality adjustment, delay in incorporating changes in consumption basket, and other important unresolved problems.

JEL-codes: F1 F4 (search for similar items in EconPapers)
Date: 2003-01
Note: PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published as Blomstrom, Magnus, Jennifer Corbett, Fumio Hayashi, and Anil Kashyap. Structural Impediments to Growth in Japan. Chicago, IL: University of Chicago Press, 2003.
Published as Mismeasurement of the CPI , Kenn Ariga, Kenji Matsui. in Structural Impediments to Growth in Japan , Blomstrom, Corbett, Hayashi, and Kashyap. 2003

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