Owen Shoemaker (2003) "Estimation and Comparison of Chained CPI-U Standard Errors With Regular CPI-U Results (2000-2001)." Proceedings of the Section on Survey Research Methods, 2003, American Statistical Association.
In 2001 the BLS calculated and published the first C-CPI-U set of indexes for the 12 months of 2000. This new C-CPI-U (Chained Consumer Price Index - Urban) is calculated and published every year, with a one year lag, using a Tornqvist formula, and can thus be labelled a "superlative" index. A set of weights are updated yearly, so that a unique set of monthly weights are available for both time t as well as for time t-n. We briefly outline the Tornqvist formula and then the methodology for estimating a set of standard errors for these new chained indexes. We then compare, over the 24-month period of Jan 2000 through Dec 2001, these new superlative index results and their standard errors with the regularly published CPI results and their published standard errors.
Last Modified Date: July 15, 2004