01734cas a2200253 a 4500 AALejournalIMF011826 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475502954 1018-5941 BD-DhAAL BD-DhAAL Armknecht Jr., Paul. Post-Laspeyres : The Case for a New Formula for Compiling Consumer Price Indexes / Paul Armknecht Jr., Mick Silver. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Consumer price indexes (CPIs) are compiled at the higher (weighted) level using Laspeyres-type arithmetic averages. This paper questions the suitability of such formulas and considers two counterpart alternatives that use geometric averaging, the Geometric Young and the (price-updated) Geometric Lowe. The paper provides a formal decomposition and understanding of the differences between the two. Empirical results are provided using United States CPI data. The findings lead to an advocacy of variants of a hybrid formula suggested by Lent and Dorfman (2009) that substantially reduces bias from Laspeyres-type indexes. Mode of access: Internet Silver, Mick. IMF Working Papers; Working Paper ; No. 2012/105 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/105/001.2012.issue-105-en.xml IMF e-Library