This paper uses revealed preference restrictions and nonparametric statistical methods to bound the true cost-of-living index which corresponds most closely to the UK Retail Prices Index (RPI). This is used to assess the RPI formula for substitution bias. We show that neither the direction nor...

Economic theory suggests that unemployment could affect human capital investment decisions in either direction. The authors use microdata on sixteen year-olds from the U.K. Family Expenditure Survey to examine the effects of household circumstances and regional unemployment rates on early school...