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dc.contributor.authorChung, Chul
dc.contributor.authorGibson, John
dc.date.accessioned2010-05-07T01:36:40Z
dc.date.available2010-05-07T01:36:40Z
dc.date.issued2010
dc.identifier.citationChung, C. & Gibson, J. (2010). CPI mismeasurements and their impacts on economic management in Korea. Asian Economic Papers, 9(1), 1-15.en
dc.identifier.urihttps://hdl.handle.net/10289/3865
dc.description.abstractWe estimate the consumer price index (CPI) bias in Korea by employing the approach of Engel's Law as suggested by Hamilton (2001). Using Korean panel data (Korean Labor and Income Panel Study) and following Hamilton's model with a non-linear specification correction, our estimation result shows that the CPI bias over the sample period (2000–05) averaged at least 0.7 percent annually, which implies that about 21 percent of the inflation rate during the sample period can be attributed to the bias. This CPI bias has caused a substantial understatement of the growth in real GDP and contributes to excessive transfers from younger taxpayers to the elderly through indexed pension payments. We discuss the implications of the CPI bias for economic management and policies in Korea.en
dc.format.mimetypeapplication/pdf
dc.language.isoen
dc.publisherMass Inst of Technology Pressen_NZ
dc.relation.urihttp://www.mitpressjournals.org/doi/abs/10.1162/asep.2010.9.1.1en
dc.rightsThis article has been published in the journal: Asian Economic Papers. © 2010 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.
dc.subjectconsumer price indexen
dc.subjectCPIen
dc.subjectKoreaen
dc.titleCPI mismeasurements and their impacts on economic management in Koreaen
dc.typeJournal Articleen
dc.identifier.doi10.1162/asep.2010.9.1.1en
dc.relation.isPartOfAsian Economic Papersen_NZ
pubs.begin-page1en_NZ
pubs.elements-id34885
pubs.end-page15en_NZ
pubs.issue1en_NZ
pubs.volume9en_NZ


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