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The CPI for rents: a case of understated inflation

Crone, Theodore M.; Nakamura, Leonard I.; Voith, Richard - Federal Reserve Bank of Philadelphia - 2006

Until the end of 1977, the U.S. consumer price index for rents tended to omit rent increases when units had a change of … consequences for historical measures of rent-house-price ratios and for the growth of real consumption. …

Persistent link: https://www.econbiz.de/10005387514

The CPI for rents: a case of understated inflation.

Crone, Theodore M.; Nakamura, Leonard I.; Voith, Richard - Federal Reserve Bank of Philadelphia - 2004

Until the end of 1977, the method used in the U.S. consumer price index (CPI) to measure rent inflation tended to omit … rent increases when units had a change of tenants or were vacant. Since such units typically had more rapid increases in … that from 1940 to 1985 the CPI inflation rate for rent most likely was understated by 1.4 percentage points annually in U …

Persistent link: https://www.econbiz.de/10005717412

Introduction to price and productivity measurement for housing

Balk, Bert M.; Diewert, W. Erwin; Nakamura, Alice O. - Federal Reserve Bank of Philadelphia - 2009

This paper provides a brief introduction to a proposed new opportunity cost treatment of owner-occupied housing in measures of inflation for the United States. In addition, the paper introduces, and provides links to, a collection of nine other papers that discuss various aspects of the...

Persistent link: https://www.econbiz.de/10005512340

Accounting for housing in a CPI

Diewert, W. Erwin; Nakamura, Alice O. - Federal Reserve Bank of Philadelphia - 2009

In this paper, we take stock of how statistical agencies in different nations are currently accounting for housing in their consumer price indexes (CPIs). The rental equivalence and user cost approaches have been favourites of economists. Both can be derived from the fundamental equation of...

Persistent link: https://www.econbiz.de/10005389722

Measuring housing services inflation

Crone, Theodore M.; Nakamura, Leonard I.; Voith, Richard - Federal Reserve Bank of Philadelphia - 1999

Recent papers have questioned the accuracy of the Bureau of Labor Statistics' methodology for measuring implicit rents for owner-occupied housing. The authors propose cross-checking the BLS statistics by using data on owner-occupied and rental housing from the American Housing Survey. A hedonic...

Persistent link: https://www.econbiz.de/10005717399

The measurement of retail output and the retail revolution

Nakamura, Leonard I. - Federal Reserve Bank of Philadelphia - 1997

The computerization of retailing has made price dispersion a norm in the United States, so that any given list price or transactions price is an increasingly imperfect measure of a product's resource cost. As a consequence, measuring the real output of retailers has become increasingly...

Persistent link: https://www.econbiz.de/10005717410

The implications of inflation in an estimated New-Keynesian model

Guerron-Quintana, Pablo A. - Federal Reserve Bank of Philadelphia - 2010

This paper studies the steady state and dynamic consequences of inflation in an estimated dynamic stochastic general equilibrium model of the U.S. economy. It is found that 10 percentage points of inflation entails a steady state welfare cost as high as 13 percent of annual consumption. This...

Persistent link: https://www.econbiz.de/10008627175

Core measures of inflation as predictors of total inflation

Crone, Theodor M.; Khettry, N. Neil K.; Mester, Loretta J. - Federal Reserve Bank of Philadelphia - 2011

Policymakers tend to focus on core inflation measures because they are thought to be better predictors of total inflation over time horizons of import to policymakers. The authors find little support for this assumption. While some measures of core inflation are less volatile than total...

Persistent link: https://www.econbiz.de/10009146815

Assessing DSGE model nonlinearities

Aruoba, S. Boragan; Bocola, Luigi; Schorfheide, Frank - Federal Reserve Bank of Philadelphia - 2013

We develop a new class of nonlinear time-series models to identify nonlinearities in the data and to evaluate nonlinear DSGE models. U.S. output growth and the federal funds rate display nonlinear conditional mean dynamics, while inflation and nominal wage growth feature conditional...

Persistent link: https://www.econbiz.de/10010718648

Dichotomy between macroprudential policy and monetary policy on credit and inflation

Suh, Hyunduk - Federal Reserve Bank of Philadelphia - 2012

This paper examines the different effects of macroprudential policy and monetary policy on credit and inflation using a simple New Keynesian model with credit. In this model, macroprudential policy is effective in stabilizing credit but has a limited effect on inflation. Monetary policy with an...

Persistent link: https://www.econbiz.de/10010628486