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|Language:||en||Status of Item:||Not peer reviewed|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|
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