Show Me the Amenity: Are Higher-Paying Firms Better All Around?
In: CESifo Working Paper 9842
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In: CESifo Working Paper 9842
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In: Journal of labor economics: JOLE, Band 41, Heft 4, S. 1041-1079
ISSN: 1537-5307
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In: FEDS Notes No. 2016-10-19 https://doi.org/10.17016/2380-7172.1830
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In: Journal of political economy, Band 132, Heft 2, S. 434-483
ISSN: 1537-534X
In: Upjohn Institute Working Paper 22-360
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In: American economic review, Band 107, Heft 10, S. 3229-3242
ISSN: 1944-7981
Coibion, Gorodnichenko, and Hong (2015) argue that the CPI underestimates the deceleration in consumer prices during economic downturns because the index fails to account for the reallocation of consumer spending from high-price to low-price stores. We show that their conclusion hinges on some nonstandard methodological choices, including an aggressive censoring of price adjustments and a treatment for missing observations that can leave out some of the price variation. Under our preferred methodology, the regression results no longer indicate that greater store switching during downturns is a statistically or economically significant phenomenon. (JEL D12, E31, E32, L25, L81, M31)
In: http://dx.doi.org/10.17016/FEDS.2015.052
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