Simulated Statistics for the Proposed By-Division Design in Consumer Price Index

• Activity Number: 399
• Type: Contributed
• Date/Time: Tuesday, August 5, 2014 : 2:00 PM to 3:50 PM
• Sponsor: Government Statistics Section
• Author(s): John Schilp*+
• Companies: Bureau of Labor Statistics
• Keywords: Consumer Price Index ; Simulated Statistics ; Design Verification

Abstract

This paper illustrates the research done in determining if by-division stratification will give results similar to the existing region city-size stratification results in the Consumer Price Index (CPI). Motivating this project is the proposed CPI switch from region city-size stratification to by-division stratification. The Generic Index Calculator was used to simulate by-division indexes for all Census Regions, as well as the non-self representing part of the all U.S. CPI. These indexes were completed by adjusting existing weights with respect to division population share. In turn, these index time series are compared to hybrid by region city-size index time series for the same areas and time period. A conclusion is given with comparison of results for CPI time series, 12-month percent changes and standard errors for the 12-month percent changes.