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Article type: Research Article
Authors: Klevmarken, N. Andersa; * | Grünewald, Olleb | Allansson, Henrikc
Affiliations: [a] Department of Economics, Uppsala University, Uppsala, Sweden | [b] Department of Trade and Policy Development, National Board of Trade, Stockholm, Sweden | [c] The Swedish National Audit Office, Stockholm, Sweden
Correspondence: [*] Corresponding author: N. Anders Klevmarken, Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden. Tel.: +46 532 20333; E-mail: anders.klevmarken@nek.uu.se
Abstract: A long lasting controversy in Sweden as well as internationally is how to best estimate a price on the services of owner occupied housing in a consumer price index. There is no international consensus and different approaches have been adopted. In this article we use a true cost-of-living index previously suggested by one of the authors, apply the model to Swedish data and compare the results to the official Swedish consumer price index. We find that the official index has underestimated changes in the cost-of-living and suggest a region in which a better approximation should lie.
Keywords: Price index, cost-of-living index, compensation index, price of housing services, D91
DOI: 10.3233/JEM-2012-0362
Journal: Journal of Economic and Social Measurement, vol. 37, no. 3, pp. 177-195, 2012
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