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BLS calculation methods

  • Sun, Aug 25, 2013 - 01:32pm

    Peter Squitieri

    Peter Squitieri

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    Joined: Aug 25 2013

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    BLS calculation methods



Read this very well-thought out article from way back in 2008

In it they (the BLS)  explains why they use hedonic adjustment,  what it is,  and why every academic economist approves of it.  The case is pretty compelling.

More important, they point out (pg 9)  that using the hedonic methods INCREASE the CPI-U, not decrease it.  And the impact is a miniscule 0.005 % per year.

so even if you don't like using it,  it's making only a very tiny difference in the reported CPI-U and CPI-W