At What Price?

This book critically examines consumer price indexes, particularly the effectiveness of the CPI and COLI frameworks in reflecting real living costs. At What Price? offers valuable insights.

The book At What Price? explores the foundational aspects of consumer price indexes, focusing on the strengths and weaknesses of both traditional 'fixed basket' and cost-of-living index (COLI) approaches. It addresses complex issues such as the evolving quality of goods and services, which complicates the measurement of living costs. The text critically examines how accurately the consumer price index (CPI) reflects the actual changes in living expenses faced by individuals, ranging from everyday items like apples to essential services such as healthcare.

In At What Price?, the author delves into the intricacies of constructing a single index that can adequately represent the diverse living costs experienced by the nation's population. The book poses important questions regarding the desirability of utilizing a COLI framework in the development of the U.S. CPI. It carefully scrutinizes the assumptions and key attributes that define each type of index, ultimately seeking to clarify the best approach for accurately capturing economic realities.

The recommendations put forth in At What Price? are aimed at the Bureau of Labor Statistics, suggesting ways to enhance the accuracy and relevance of the CPI. Given its implications for economic policy and individual pay raises, the book is a vital resource for policymakers, researchers, and employers alike, offering insights that are essential for understanding the complexities of consumer price measurement.