Showing papers on "Consumer price index published in 1982"

The Variability of Inflation Rates Across Household Types

Abstract: IT IS WELL KNOWN that the Consumer Price Index (CPI) measures the changing cost of the fixed market basket of an average consumer. It is an aggregate economic indicator of changes in retail prices and, in the process of averaging across individuals, subsumes the variability in consumption patterns inherent in a modetn economy. It is thus evident that the use of a single index in adjusting the incomes of broad groups of individuals has an automatic distributional impact. Individuals whose "own" price index rises more slowly than the index used to adjust their incomes experience a windfall benefit, while those whose price index rises more rapidly experience a relative loss. Such variability in actual price experience relative to the average measured change in prices is soon to be of great importance to taxpayers throughout the income distribution. The Economic Recovery Tax Act of 1981 calls for "Adjustments in tax tables so that inflation will not result in tax increases", beginning not later than December 15, 1984 [12]. Public Law 97-34 calls for using the official Consumer Price Index for all Urban Con-

Agricultural Price Policies and the Developing Countries

Abstract: Governments in developing countries have used agricultural price policies extensively in their developmental efforts, pursuing different goals with a variety of tools. The purpose of this book is to analyze the intended and unintended effects of agricultural price policies and to present methods for measuring their magnitudes as a contribution to the formulation of future policies. The book reviews contrasting country experiences and develops general methods that can be used where agricultural price policies are a concern. The main purpose of the chapters dealing wtih country experiences is to show how goals have been affected by price policies. The analysis is carried out in quantified terms where feasible. It attempts to show what the major effects are, and not primarily to make policy recommendations. It also shows how the effects may differ, depending on a country's agricultural situation and stage of development. The book also provides tools for the analysis of price policies in any country. Basic considerations in measuring effects on producers, consumers, and government costs are first presented. These are then applied to interventions of distinctly different types, which are encountered partly because the countries are at very different levels of development. Analyses are given of differences between price supports and agricultural input subsidies, seasonal stabilization, effects on adoption of new varieties, and how to handle interrelated commodities.

An Empirical Evaluation of the CPI Home Purchase Index, 1973–1978

Abstract: This paper examines the accuracy of the home purchase component of the Consumer Price Index. Alternative monthly index series are simulated over the period 1973–1978 using FHA Master Statistical File data. Hedonic indexes derived from monthly regressions are compared to series constructed by the current CPI index method, which utilizes only age and size of house in correcting for intertemporal quality change. Of particular interest is the BLS practice of “linking out” price changes occurring when FHA raises its ceiling on the size of insurable mortgages. This procedure may have led to a significant downward bias in the official index.

Analysis of the World Cocoa Market

Abstract: This paper reports the results from a new world cocoa econometric model constructed to project consumption, output and price over the next decade. The projections are based on econometric analysis of cocoa demand and production in major consuming and producing countries and regions. The concentration of consumption of cocoa and cocoa products within the industrial countries, with their expected low population and income growth and low elasticities of income and price, points to a continuation of the slow growth in consumption. Production capacity was stimulated by the high prices prevailing in 1976 and 1977 and the sharp increase in output has depressed prices; until the growth in output is dampened by the low prices now being experienced there will be a further downwards pressure on prices. The model predicts that the phase of low prices will continue until the late 1980's, when some recovery will take place. Simulations of the model were carried out to show the susceptibility of cocoa prices and export revenues to increases in production at rates faster than the growth in demand resulting from population and income increases. Other simulations analyzed the market impact of the recently adopted buffer stock scheme.

Is the consumer price index a fair measure of inflation

Abstract: The Consumer Price Index (CPI) is widely used to adjust wages and federal benefits as an offset to inflation, but the index contains substantial sources of bias as used for such purposes For instance, these sources of bias, such as changes in the real cost of petroleum, the cost of environmental protection, and an inappropriate method for measuring homeownership costs, accounted for nearly half of the CPI increase in the year from November 1978 to November 1979 Because of the nature of the index, such biases will always be present, creating the risk that the CPI may be adding to the inflation that it is only supposed to measure Therefore, a new index or indexes that are more appropriate for adjusting wages and benefits for inflation should be developed

Consumer Food Price Subsidies in Pakistan

Abstract: Consumer food price subsidies have been a feature of Pakistan’s economy since World War II. They operate through a system of government-licensed, privately owned ration shops that sell fixed quantities of wheat and sugar. They were initiated, not in response to an existing nutritional need, but as a way of allocating essential consumer items in the face of wartime shortages of goods and transport. The system has persisted to the present, however, with beneficial results for the level of food consumption of the population.