This research is supported by the National Science Foundation and a grant from the Institute for Monetary and Economic Studies of the Bank of Japan. The evaluations and opinions contained herein are those of the author only and should not be taken to represent the view of any other member of the Boskin Commission. Portions of the summary of the Boskin Commission findings and its reactions to its critics are adapted from Boskin et al. (1998). An earlier version of this paper was given at the Conference on the Measurement of Inflation, Cardiff, Wales, September 1, 1999.

Abstract

This paper briefly summarizes the analysis and findings of the 1996 Boskin Commission Report, Toward a More Accurate Measure of the Cost of Living. It then reviews the comments and criticisms that appeared soon after the Report was issues and provides responses to the more important criticisms. Changes in the CPI, both those that were planned before the Report and those that were in part a response to its recommendations, are summarized and assessed. The paper concludes with a summary of recent research on quality change and comments on the current status of the CPI and of price measurement research.

Keywords: inflation, price measurement, quality change, new products

JEL Codes: I1, I11


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