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From page 82... ... One way for BLS to make a large leap forward is to create its own, ambitious in-house data collection 38 For such data collection, cooperation may still be needed from the retailers, which could be an impediment to BLS developing its own home-scan data. A00858 -- Consumer Price Index REV.indd 82 8/15/22 11:54 AM Read the entire page →
From page 83... ... recommend us ing a Fisher index, linking the first post-lockdown period to the last pre-lockdown period, for measuring price changes during this aberrant period. A00858 -- Consumer Price Index REV.indd 83 8/15/22 11:54 AM Read the entire page →
From page 84... ... 84 MODERNIZING THE CONSUMER PRICE INDEX FOR THE 21ST CENTURY suggested in this chapter would provide useful comparison to the official CPI and in disruptive episodes like COVID-19 would provide one gauge of how far off weights were in the official CPI. A00858 -- Consumer Price Index REV.indd 84 8/15/22 11:54 AM Read the entire page →
From page 85... ... 85 A00858 -- Consumer Price Index REV.indd 85 8/15/22 11:54 AM Read the entire page →
From page 86... ... This forgone income could be considered the cost of living in the home. A00858 -- Consumer Price Index REV.indd 86 8/15/22 11:54 AM Read the entire page →
From page 87... ... A00858 -- Consumer Price Index REV.indd 87 8/15/22 11:54 AM Read the entire page →
From page 88... ... The coefficients vary over both location and time since the model is estimated in each of the 32 index areas every quarter. A00858 -- Consumer Price Index REV.indd 88 8/15/22 11:54 AM Read the entire page →
From page 89... ... 12 The use of property value and household income in the regression to extrapolate owner occupied housing expenditures likely mitigates the absence of unit size and lot size informa tion, since larger homes and homes on larger lots will likely have higher values and be occupied by higher-income households. A00858 -- Consumer Price Index REV.indd 89 8/15/22 11:54 AM Read the entire page →
From page 90... ... . A00858 -- Consumer Price Index REV.indd 90 8/15/22 11:54 AM Read the entire page →
From page 91... ... Thus, the owners of high-end properties are not able to charge the full user cost to the renters. A00858 -- Consumer Price Index REV.indd 91 8/15/22 11:54 AM Read the entire page →
From page 92... ... Because the Canadian method includes depreciation of the structure, it is not a pure payments approach. A00858 -- Consumer Price Index REV.indd 92 8/15/22 11:54 AM Read the entire page →
From page 93... ... . A00858 -- Consumer Price Index REV.indd 93 8/15/22 11:54 AM Read the entire page →
From page 94... ... The rental equivalence approach is consistent with the cost-of-living index objective of the CPI, and the change over time is based on observed price changes. The user cost approach is also conceptually consistent with a cost-of-living index objective but is a model-based approach that has some practical operational constraints.19 The acquisitions approach and the payments approach are not fully consistent with a cost-of-living index objective. Read the entire page →
From page 95... ... com/445305060/files/doc_financial/annual/2020/AMH-2020-Annual-Report.pdf. A00858 -- Consumer Price Index REV.indd 95 8/15/22 11:54 AM Read the entire page →
From page 96... ... A00858 -- Consumer Price Index REV.indd 96 8/15/22 11:54 AM Read the entire page →
From page 97... ... A00858 -- Consumer Price Index REV.indd 97 8/15/22 11:54 AM Read the entire page →
From page 98... ... , which ad vocates for the maximum of the rental equivalence and user cost approaches. A00858 -- Consumer Price Index REV.indd 98 8/15/22 11:54 AM Read the entire page →
From page 99... ... For such indexes, the payments approach may have an even greater appeal since owner payments are, in principle, easy to observe whereas the price of housing services must be imputed. In addition, the pay ments method may have an appeal for price indexes used to index benefit payments for increases in inflation, like the CPI-W, because the goal of these indexes is to compensate households for inflation in the cost of consuming goods and services purchased with money. Read the entire page →
From page 100... ... A00858 -- Consumer Price Index REV.indd 100 8/15/22 11:54 AM Read the entire page →
From page 101... ... , but because CPI rent changes of the owner-occupied units were being imputed A00858 -- Consumer Price Index REV.indd 101 8/15/22 11:54 AM Read the entire page →
From page 102... ... While it was thought possible that the difference reflected a real difference in the inflation rates of the types of tenant units that were most similar to owner-occupied units, there was also a concern that there may have been a flaw in the matching process, which was considered to be a bit of a black box. In the imputation algorithm, the six-month rent changes for OER were calculated using a Carli formula -- that is, the imputed owner's equivalent A00858 -- Consumer Price Index REV.indd 102 8/15/22 11:54 AM Read the entire page →
From page 103... ... St. Louis Federal Reserve. Read the entire page →
From page 104... ... While the panel does not know the full details of the motivation behind the shift, it seems that, at least in part, the new approach was driven by an understand ing that it was problematic to attempt to closely match owner units to similar tenant units -- especially in neighborhoods that were predominantly owner occupants -- and that the most practical approach was to attempt to reweight the tenant units to more closely resemble the population of owner units. A00858 -- Consumer Price Index REV.indd 104 8/15/22 11:54 AM Read the entire page →
From page 105... ... . 105 A00858 -- Consumer Price Index REV.indd 105 8/15/22 11:54 AM Read the entire page →
From page 106... ... for measuring health insurance costs faced by consumers. In particular, we focus on the pros and cons of two different conceptual frameworks for pric ing health insurance: the indirect method, currently used in the CPI, and the direct method, currently used in the Producer Price Index (PPI) Read the entire page →
From page 107... ... A00858 -- Consumer Price Index REV.indd 107 8/15/22 11:54 AM Read the entire page →
From page 108... ... It is worth reiterating, however, that alternative data sources could be helpful for gauging quality change, allowing for a more careful and detailed tracking of the characteristics of medical care inputs that consumers purchase -- such as insurance p olicies -- and of the outcomes experienced by consumers who undergo various medi cal procedures and other treatments. A00858 -- Consumer Price Index REV.indd 108 8/15/22 11:54 AM Read the entire page →

From page 82...

... One way for BLS to make a large leap forward is to create its own, ambitious in-house data collection 38 For such data collection, cooperation may still be needed from the retailers, which could be an impediment to BLS developing its own home-scan data. A00858 -- Consumer Price Index REV.indd 82 8/15/22 11:54 AM