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E-grāmata: Retail Prices Index: A Short History

  • Formāts: EPUB+DRM
  • Izdošanas datums: 30-Jun-2020
  • Izdevniecība: Springer Nature Switzerland AG
  • Valoda: eng
  • ISBN-13: 9783030465636
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  • Formāts: EPUB+DRM
  • Izdošanas datums: 30-Jun-2020
  • Izdevniecība: Springer Nature Switzerland AG
  • Valoda: eng
  • ISBN-13: 9783030465636

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This Palgrave Pivot reviews the history of the UK's Retail Prices Index (RPI) from its origins just after the Second World War to its controversial position today. Both the developments in the methodology of the index and the political and social context in which its development took place are closely examined. The authors explain how the RPI went from being the dominant measure of inflation for decades to its current position as an officially discredited index. Despite this status, it is still widely used and attracts much support from a range of stakeholders, including several areas of government. 

Important reading for anyone interested in both sides of the argument for and against RPI and the likely way forward for the measurement of inflation.  


1 Introduction
1(12)
1.1 Prices, the Value of Money and Indexation
1(2)
1.2 The Road to Modern Inflation Measurement
3(1)
1.3 Monetarism and Inflation Targetting
4(1)
1.4 The Uses of Inflation Measures
5(2)
1.5 The Effects of Changes in Inflation Measurement
7(1)
1.6 The Wider Picture for Measuring Inflation in Consumer Prices
8(1)
1.7 The Longer Term and the Need for Stability
9(1)
References
10(3)
2 The Early History of Inflation Measurement
13(20)
2.1 The Big Picture
13(1)
2.2 The Origins of Inflation Measurement
14(4)
2.3 Combining Prices and Expenditure Data
18(1)
2.4 Early Household Expenditure Data
19(1)
2.5 Early Price Series
20(1)
2.6 Better Statistics and the Political Debate
21(1)
2.7 Early Official Price and Household Expenditure Data
22(2)
2.8 The First World War and the Cost of Living
24(1)
2.9 Between the Wars
25(1)
2.10 The Second World War
26(1)
2.11 After the Second World War
27(2)
2.12 The Interim Index
29(1)
References
30(3)
3 The Launch of the Index of Retail Prices
33(16)
3.1 The New Household Expenditure Survey
33(6)
3.1.1 Defining the Population with Typical Expenditure Patterns
36(2)
3.1.2 Regular Updating of Expenditure
38(1)
3.2 The New Index of Retail Prices
39(2)
3.2.1 Not the Cost of Living
40(1)
3.2.2 A Designed Index System
40(1)
3.3 Enhancing the Basket and Scope of the Index
41(4)
3.3.1 Price Collection
41(1)
3.3.2 Price Definition Challenges
42(1)
3.3.3 Owner Occupiers' Housing Costs
43(1)
3.3.4 Meals Out
44(1)
3.3.5 Uncollected Prices
44(1)
3.3.6 Elementary Aggregates
44(1)
3.4 A Period of Stability
45(1)
3.5 Uses of the Retail Prices Index
45(1)
References
46(3)
4 Improving the Index
49(18)
4.1 Developing the RPI
50(2)
4.2 The Formula Effect
52(3)
4.3 Price Collection at the Local Level
55(1)
4.4 The Treatment of Clothing
56(2)
4.5 The Treatment of Electronic Goods, and Hedonics
58(1)
4.6 Owner Occupiers' Housing Revisited
59(4)
4.7 Conclusion: Improving the RPI?
63(1)
References
63(4)
5 The RPI in the Political Sphere
67(16)
5.1 The Independence of Official Statistics
68(1)
5.2 The Boskin Commission
69(2)
5.3 The Harmonised Index of Consumer Prices
71(1)
5.4 An Inevitable Sequence of Events?
72(1)
5.5 Two Measures
73(1)
5.6 The Cost of Living Framework
74(1)
5.7 The Adoption of Inflation Targeting
75(1)
5.8 RPI vs. CPI
76(2)
5.9 Recent Tears
78(1)
5.10 Conclusions
79(1)
References
80(3)
6 Reviews of the RPI and the Loss of National Statistics Status
83(26)
6.1 Overview
83(1)
6.2 Clothing Inflation
84(2)
6.3 Assessing the RPI Methodology
86(1)
6.4 Public Concerns
87(1)
6.5 UK Statistics Authority Assessment Report
88(1)
6.6 ONS Work on the Formula Effect
89(7)
6.6.1 Clothing Inflation Measurement
89(2)
6.6.2 The Formula Effect in Other Countries
91(1)
6.6.3 The Diewert Report
91(2)
6.6.4 Methodology Work---Economic and Statistical Approaches
93(3)
6.7 Bringing the Work Together
96(1)
6.8 The 2012 Consultation
97(3)
6.9 The Johnson Review of Consumer Price Statistics
100(4)
6.9.1 Setting the Scope
101(1)
6.9.2 General Conclusions of the Review
102(1)
6.9.3 After the Review Report
102(2)
References
104(5)
7 The Future of the RPI
109(20)
7.1 Introduction
109(1)
7.2 Government Uses of the RPI and the Switch to Using the CPI
110(5)
7.2.1 Changes Up to 2013
110(3)
7.2.2 Uses from 2013
113(1)
7.2.3 Private Sector Changes
114(1)
7.3 More Deeply Embedded Uses of the RPI
115(2)
7.3.1 Student Loans and Regulated Rail Fares
115(1)
7.3.2 Private Sector Pensions
115(2)
7.3.3 Index-Linked Bonds
117(1)
7.4 An Unsatisfactory Situation
117(1)
7.5 Royal Statistical Society Meeting in 2018
118(1)
7.6 The House of Lords Inquiry, 2018--2019
119(1)
7.7 The Issues with the Current Position
120(1)
7.8 An End to the RPI
121(1)
7.9 Conclusions
122(2)
References
124(5)
Appendix A How Consumer Price Indices are Calculated 129(4)
Appendix B Events and Dates 133(2)
Index 135
Jeff Ralph is a visiting academic at the University of Southampton, UK. He worked for the Office for National Statistics, UK, for 14 years, retiring in 2018. Much of that time was spent working on price statistics and the measurement of inflation; this included research and teaching. He has been joint author on a number of research papers and co-author of books on index numbers and inflation measurement.





Robert ONeill is Lecturer in Economics at the University of Manchester, UK, where he has been since the start of 2020. Previously he was Senior Lecturer in Economics at Huddersfield University, UK and before that he worked at the Office for National Statistics. His current role involves both research and teaching related to quantitative economics, which includes teaching students at various levels.





Paul A. Smith is Professor of Official Statistics at the University of Southampton, UK. He previously worked for 25 years at the Office for NationalStatistics, UK, where he gained extensive experience in the theory and practice of sample surveys applied to businesses, households and the population census. He undertakes consultancy and research in topics related to official statistics, and coordinates the MSc in Official Statistics.