Working Paper Series, Department of Economics, Uppsala University
No 2004:18:
Towards an Applicable True Cost-of-Living Index that Incorporates Housing
N. Anders Klevmarken ()
Abstract: A dynamic model of consumer behavior that incorporates the
demand for housing is specified such that it is consistent with the general
purpose of a consumer price index. From this model a true cost-of-living
index that includes housing is derived. Being an ideal index it cannot be
computed without imposing additional assumptions about the behavior of the
consumer, but it is possible to draw conclusions about the prices and
weights that should be used in conventional approximations to such an ideal
index.
Keywords: True cost-of-living index; compensation index; price index of housing; (follow links to similar papers)
JEL-Codes: C43; D91; (follow links to similar papers)
8 pages, November 5, 2004
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