I ntroduction to the CPI CE Data in the CPI CE Data in the CPI Production Requirements q The CPI is a Cost-of-Living I ndex (COLI ) The CPI is a Cost of Living I ndex (COLI ) and Redesign I nterests designed to answer the following question: William Casey “What is the cost, at this month’s market Economist Economist prices, of achieving the standard of living Consumer Price Index actually attained in the base period?” Consumer Expenditure Survey Data Users Forum June 21 st , 2010 BLS Handbook of Methods 2 Published CPI I ndex Series Major Uses of the CPI j The CPI is used to adjust: The CPI is used to adjust: CPI for All Urban Consumers Social Security benefits (CPI-U) Income bracket adjustments CPI for Urban Wage Earners and g Income eligibility requirements Income eligibility requirements Clerical Workers (CPI-W) School lunch costs Cost-of-living wage adjustments C t f li i dj t t Chained CPI for All Urban Consumers (C CPI U) Consumers (C-CPI-U) 3 4
Four Surveys in the CPI y Uses of CE Data in the CPI : Aggregation Weights Aggregation Weights Consumer Expenditure Survey (CE) Consumer Expenditure Survey (CE) 1 1. Annualized Expenditure Weights Source of weights Limited source of basic weights for C&S Sample Limited source of basic weights for C&S Sample Monthly Expenditure Weights hl d h Point-of-Purchase Survey (TPOPS) 2. Commodities and Services Sample S Sampling frame for C&S Pricing Survey li f f C&S P i i S Item Sample Selection Pricing Survey (C&S) 3. Percent of POPSCAT (item basic weights) Source of prices for goods and services Housing Survey (HOUSING) 4. Research Research Source of prices for rent and OER 5 6 Uses of CE Data in the CPI CPI Estimation Stages CPI Estimation Stages 1 st 2 nd St Stage Stage C&S, Housing $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ indexes $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8 ,0 1 8 8 ,0 1 8 elem entary cells cpi ( 2 1 1 item s x 3 8 areas) 1 2 5 ,0 0 0 C&S price quotes 5 0 ,0 0 0 rents Published CE CE indexes weights 7 8
Classification of the Market I tem Detail Basket Basket Expenditure Class HK Appliances CPI’s classification structure is broken HK01 Major appliances HK01 Major appliances Item Strata Item Strata down into: d i t HK02 Other appliances ELI 8 Major Groups HK021 FLOOR CLEANING EQUIPMENT UCC UCC – 70 Expenditure Classes 320511 ELECTRIC FLOOR CLEANING EQUIP • 211 Item Strata HK022 SMALL ELECTRIC KITCHEN APPLIANCES 320521 SMALL ELECTRIC KITCHEN APPLIANCES 303 Entry Level Items (ELIs) 303 Entry Level Items (ELIs) HK023 OTHER ELECTRIC APPLIANCES • 750 Universal Classification Codes 300411 PURCH/INST WINDOW A/C RNTR (UCCs) ( ) 300412 PURCH/INST WINDOW A/C OWND 300412 PURCH/INST WINDOW A/C OWND Number of UCCs 320522 PORTABLE HEATING/COOLING EQUIP per ELI 1 2 3 4 5 6 7 8 9 12 13 14 18 690241 SMOKE ALARM PUR/RENT RNTR Percent of ELIs 51% 22% 8% 9% 2% 2% .9% .9% .7% .9% .7% .9% .7% 690242 SMOKE ALARM PUR/RENT OWND 690244 OTH HH APPL RNTR 9 690245 OTH HH APPL OWND Annual and Monthly Area Detail Expenditure Weights Expenditure Weights 38 elementary Areas Biennial Weight Periods used in CPI-U 87 PSUs and CPI-W Index Series 31 PSUs correspond directly to Areas 31 PSUs correspond directly to Areas PSU Monthly Weights used in Final C-CPI-U Region Area Area Name Name PSU City Index Series de Se es A312 A312 Washington, DC Washington, DC A312 A312 Washington Washington Albany, GA X342 Two stages of CPI Index estimation X344 Norfolk, VA Second stage weights provided by CE data Second stage weights provided by CE data Pine Bluff, AR Pine Bluff, AR X346 X346 South Region X300 Smaller South Region X350 Richmond, VA PSUs X352 Port Arthur, TX San Antonio, TX San Antonio, TX X374 X374 Oklahoma City, X376 OK 11 12
Relative I mportance of Basic CE Diary Survey Category Mapping CE Diary Survey Category Mapping Goods and Services in the CPI Goods and Services in the CPI Ow ner's Equivalent Rent I TEM CODE I TEM_ CODE DESCRIPTION 2 3 .5 9 % 35012 BLENDER CANNER ELECTRIC COFFEE GRINDER COFFEE MAKER COFFEE MAKER ELECTRIC Rent UCC COFFEE MAKER WITH CLOCK RADIO 5 .9 7 % 320521 COFFEE WARMER CONVECTION OVEN CONVECTION OVEN CROCKPOT ELECTRIC KNIFE Gasoline FOOD PROCESSOR 4 .3 4 % HOT PLATE HOT PLATE Used HOT TRAY New Vehicles 3 .5 7 % Vehicles ELI ICE CREAM FREEZER ELECTRIC 2 .0 1 % Full Service Restaurants ICE CREAM MAKER ELECTRIC HK022 Car Fast Food Electricity I nsurance 2 .3 6 % 2 3 6 % 2 .8 5 % 2 8 5 % 2 .4 9 % 2 .8 7 % 14 CPI Adjustments to CE CE I nterview Survey Category Mapping Mapping Data Data Adjust COST to meet CPI market basket definitions Adjust COST to meet CPI market basket definitions ELI Food on Trips – increase $ of Diary UCCs by food-trip expenditures as HK022 share of total food expenditures reported in Interview Rental equivalence of Major Appliances – reduce reported Rental equivalence of Major Appliances reduce reported expenditures of owners by probability a like-renter would incur the expense Rental equivalence of Household Maintenance/ Repair – impute $ of owners, using sample mean of like-renters , g p UCC UCC Gasoline Allocation – Allocate gasoline $ into Regular, Mid-Grade, and 320521 Premium Medical Care – convert reported expenditures and reimbursements into p p net-out-of-pocket expense for each consumer unit Medical Care I nsurance – allocate carrier costs to health care goods and Question I TEM_ CODE services, leaving “retained earnings” as insurance weight CUES 1 1 560 560 Other adjustmentsELI variable to each expenditure record used 15 16
CPI Adjustments to CE E xpenditure W eight P rocessing S ystem Data Data Estimates of Estimate s of average annu average annual ex expenditure per penditure per consumer unit, consumer unit, to to CPI-U populatio CPI-U popula tion, 2008: , 2008: CPI CPI Hybrid Hybrid Biennial cw Biennial cw I ndex Estimation System I ndex Estimation System data table data table to to CPI CE Superlative Superlative I ndex Estimation System I ndex Estimation System < §1 0 §1 0 §1 0 §1 §1 To To CE CE PSU-to- AREA PSU-to- AREA SMS SMS Biennial Estim ates Biennial Estim ates Biennial Estim ates parm file parm file data data Define Define Use Case 4.5.6 Use Case 4.5.6 I TEM-AREA-2YR I TEM-AREA-2YR I TEM-AREA-2YR base base $ 46 730 $ 46,730 $ 50,486 $ 50 486 Variables Variables §2 §2 §3 §3 §3 UCC-to- ELI UCC-to- ELI CPI CPI parm file parm file annual cw annual cw Preprocess CE data Preprocess CE data Area Mapping Area Mapping Area Mapping CPI CPI data table data table adjust COST; adjust COST; adjust population wts; adjust population wts; adjust population wts; micro-level micro-level UCC- to-SRC UCC- to-SRC parm file parm file add ELI variable add ELI variable map to PSU, AREA map to PSU, AREA map to PSU, AREA data table data table Gas SRC Gas SRC §6 §6 §9 §9 §9 parm file parm file Gasoline Gasoline §4 §4 §4 Owner Shelter: CPI= rental equivalence, CE= mortgage interest, taxes q , g g , parm file parm file AREA HS AREA HS Com posite Estim ate Com posite Estim ate Com posite Estim ate p p p Review Review Review Review Sum data Sum data Sum data Sum data Sum data Sum data parm file parm file fil fil I TEM-AREA-YEAR I TEM-AREA-YEAR I TEM-AREA-YEAR data data ELI -PSU-MO level ELI -PSU-MO level ELI -PSU-MO level Owner Maintenance/ Repair/ Appliances and I nsurance: CPI Retained Retained §5 §5 §5 Earnings Earnings §7 §7 §7 parm file parm file reduced to rental equivalence amount Calculate Calculate Calculate CPI CPI CPI CPI CPI CPI ELI I SS ELI I SS ELI I SS §4 §4 Sum data Sum data Sum data ELI I SS ELI I SS prelim cw prelim cw probabilities probabilities probabilities data table data table I TEM-AREA-MO I TEM-AREA-MO I TEM-AREA-MO data table data table data table data table Vehicles: CPI = gross price; CE= net price Vehicles: CPI gross price; CE net price §8 §8 §8 CPI Excludes: CPI CPI to to monthly cw monthly cw SMS SMS to to Ratio Allocate Ratio Allocate Ratio Allocate data table data table Use Case 4.5.4 Use Case 4.5.4 Superlative Superlative I TEM-AREA-MO I TEM-AREA-MO I TEM-AREA-MO Cash Contributions I ndex Estimation System I ndex Estimation System KEY: Personal Insurance and pensions P l I d i Input data d Input parameter file Functional processing step Vehicle finance charges Intermediate output data table Final output data table Slide 18 Annual and Monthly Uses of CE Data in the CPI : Expenditure Weights Summary Expenditure Weights Summary CPI net out-of-pocket-expense CPI net out of pocket expense Aggregation Weights Aggregation Weights Annualized Expenditure Weights Urban, wage-earning, and elderly Monthly Expenditure Weights populations l hl d h Commodities and Services Sample Month and year of purchase C&S Sample Selection Item Strata and Area detail expenditure Percent of POPSCAT (item basic weights) estimates estimates Research Research 19 20
Recommend
More recommend
