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IFS Reports
July 1999 R60
Article
Cost-of-living indices and revealed preference
Type: IFS Reports
Authors: Laura Blow and Ian Crawford
Volume, issue, pages: 130 pp
ISBN: 978-1-873357-92-7
IFS member price: £10
Non-member price: £25

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This report considers sources of bias in cost-of-living and price indices, with particular reference to the UK's retail price index. The sources of bias discussed are caused by the introduction of new goods, quality change in existing goods and commodity substitution by consumers. New methods of quantifying these biases and correcting them are presented with empirical applications.

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