ARTICLE
ABSTRACT
This paper examines a possibility to apply the original price index formula to measuring the commodity substitution bias associated with the Consumer Price Index (CPI). Through simulation study the CPI bias values - calculated by using the original price index formula – is compared with those calculated on the basis of some known, superlative price indices.
KEYWORDS
CPI, COLI, superlative index, Laspeyres index, Fisher index
JEL
E17, E21, E30
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