Sinclair, Tara; Jansen, Dennis W.; Bradley, Michael D. - Institute for International Economic Policy (IIEP), … - 2009
We decompose core CPI and the food and energy CPI measures into permanent and transitory components using a correlated unobserved components model, to examine the behavior of core CPI when subject to shocks and to examine the claim that core CPI captures the persistent part of headline CPI. We...