Diewert, Erwin; Huwiler, Marco; Kohli, Ulrich - Vancouver School of Economics - 2009
The consumer price index (CPI) is usually computed as a fixed-weighted Laspeyres price index, with the weights updated at discrete intervals only. It is well known that the Laspeyres functional form entails a substitution bias. One way to reduce it would be to use chained indices, and...