Exploratory Analysis that redefined the parameter of a variable in Consumer Price Index Housing Age
Abstract Number:
3684
Submission Type:
Contributed Abstract
Contributed Abstract Type:
Paper
Participants:
Alice Yu (1), Ayme Tomson (1), Benjamin Houck (1), Chun Wing Tse (1)
Institutions:
(1) BLS, N/A
Co-Author(s):
First Author:
Presenting Author:
Abstract Text:
Rent and owner's equivalent rent in Consumer Price Index (CPI) uses building's age bias and structural change factors. These factors are calculated each December, then run in January, and put into production use for the following 12 months. A multivariable regression model with 35 independent variables and one dependent (unit's rent) variable is used to calculate these factors. One of the independent variables is the product of the building's age (the current year minus the year a structure is built) and a binary variable, "old". The "old" binary variable is defined as if the unit is built in 1919 or earlier, or if the unit is built in 1920 or later. This "old" parameter is defined in a static manner that underperforms in statistical significance and restricts CPI methodology. An alternative, less restrictive, definition of the "old" parameter which performs with higher statistical significance is found in this research.
Keywords:
CPI|building's age bias|exploratory analysis|python| |
Sponsors:
Survey Research Methods Section
Tracks:
Data Analysis/Modeling
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