Owner-occupied housing costs and bias in the Irish Consumer Price Index
|Title:||Owner-occupied housing costs and bias in the Irish Consumer Price Index||Authors:||McCarthy, Colm||Permanent link:||http://hdl.handle.net/10197/42||Date:||Jun-2007||Abstract:||The treatment of owner-occupied housing costs is a recurring problem in the construction of consumer price indices, and there are competing methodologies. In the most widely-used Irish index, the Payments Approach, which attaches a weight to a term involving historical house prices and an interest rate, is used to measure these costs. It is argued that this has resulted in a substantial over-statement of inflation in recent quarters, and that the over-statement will continue for some time. The Irish version of Eurostat’s Harmonised Index of Consumer Prices, recently running well below the CPI, is a more reliable guide. Few national statistical offices use the Payments Approach, and it is argued that the procedure used in Ireland should be reviewed.||Type of material:||Working Paper||Publisher:||University College Dublin; School of Economics||Keywords:||Consumer Price Index;Cost of Living Index;Payments approach;Owner occupied housing||Subject LCSH:||Cost and standard of living
Consumer price indexes
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
Page view(s) 10193
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.