Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Yang comments on importance of migrant remittances to future of recipient families

Bailey and Danziger's War on Poverty book reviewed in NY Review of Books

Bloomberg cites MTF data in story on CDC's anti-smoking ads for e-cigarettes

Highlights

Hicken wins 2015 UROP Outstanding Research Mentor Award

U-M ranked #1 in Sociology of Population by USN&WR's "Best Graduate Schools"

PAA 2015 Annual Meeting: Preliminary program and list of UM participants

ISR addition wins LEED Gold Certification

Next Brown Bag

Mon, April 6
Jinkook Lee, Wellbeing of the Elderly in East Asia

Are Engel Curve Estimates of CPI Bias Biased?

Archived Abstract of Former PSC Researcher

Logan, Trevon. 2009. "Are Engel Curve Estimates of CPI Bias Biased?" Historical Methods, 42(3): 97-110.

A recent literature has advanced the use of Engel curves to estimate overall CPI bias. In this paper, I show that the methodology is sensitive to the modeling of household demography. Existing estimates of CPI bias do not account for the changing effect of household size on budget shares, and this can lead to omitted variable bias. Since the effect of household size on demand changes over time the drift in Engel curves attributed to CPI bias is partially explained by this effect. My estimates of the annual rate of CPI bias from 1888 to 1935 are changed by at least 25%, and usually more than 50%, once the changing effect of household size is accounted for.

Country of focus: United States of America.

Browse | Search : All Pubs | Next