Whose Inflation? A Characterization of the CPI Plutocratic Gap


Prais (1958) showed that the standard CPI computed by most statistical agencies can be interpreted as a weighted average of household price indexes, where the weight of each household is determined by its total expenditures. In this paper, we decompose the difference between the standard CPI and a democratically weighted index (i.e., the CPI plutocratic gap… (More)


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