An estimation of CPI biases in Argentina 1985–2005 and its implications on real income growth and income distribution

Gluzmann, Pablo; Sturzenegger, Federico

doi:10.1007/s40503-017-0049-2

Latin American Economic Review

Table 5 Trebon critique

From: An estimation of CPI biases in Argentina 1985–2005 and its implications on real income growth and income distribution

	Dep. Var.: Share of food
	Small set of control variables			Extended set of control variables
	Using expenditure	Using income	Using income as instrument of expenditure	Using expenditure	Using income	Using income as instrument of expenditure
	(1)	(2)	(3)	(4)	(5)	(6)
Dummy for ENGH 96/97	− 0.111***	− 0.093***	− 0.114***	− 0.101***	− 0.082***	− 0.104***
Dummy for ENGH 96/97	(0.009)	(0.009)	(0.009)	(0.009)	(0.009)	(0.009)
Dummy for ENGH 04/05	− 0.123***	− 0.112***	− 0.125***	− 0.113***	− 0.097***	− 0.116***
Dummy for ENGH 04/05	(0.009)	(0.009)	(0.009)	(0.009)	(0.010)	(0.009)
Ln of per capita expenditure	− 0.118***		− 0.130***	− 0.097***		− 0.107***
Ln of per capita expenditure	(0.002)		(0.003)	(0.003)		(0.004)
Ln of per capita income		− 0.100***			− 0.071***
Ln of per capita income		(0.003)			(0.003)
Food prices/non-food prices	0.037**	0.048***	0.032**	0.045***	0.058***	0.040***
Food prices/non-food prices	(0.015)	(0.016)	(0.015)	(0.015)	(0.016)	(0.015)
(Dummy for ENGH 96/07) * (Ln household size)	0.001	0.006	(0.001)	0.002	0.006	0.000
(Dummy for ENGH 96/07) * (Ln household size)	(0.007)	(0.007)	(0.007)	(0.007)	(0.007)	(0.007)
(Dummy for ENGH 04/05) * (Ln household size)	0.015**	0.012	0.012*	0.016**	0.016**	0.014*
(Dummy for ENGH 04/05) * (Ln household size)	(0.008)	(0.008)	(0.008)	(0.008)	(0.008)	(0.008)
Observations	10,380	10,364	10,364	10,380	10,364	10,364
R-squared	0.407	0.35	0.405	0.424	0.382	0.423
Adj. R-squared	0.406	0.349	0.404	0.421	0.379	0.420
Cumulative Bias in CPI from 85/86 to 96/97 (%)	61.2	60.3	58.2	65.0	68.4	62.2
P. 5 (%)	65.9	66.0	62.9	70.3	74.6	67.2
P. 95 (%)	56.5	54.3	53.6	59.9	61.4	56.9
Annual Implicit Bias from 85/86 to 96/97 (%)	8.24	8.06	7.63	9.11	9.94	8.46
P. 5 (%)	9.33	9.34	8.62	10.50	11.70	9.63
P. 95 (%)	7.28	6.88	6.74	7.96	8.30	7.36
Cumulative Bias in CPI from 85/86 to 04/05 (%)	64.9	67.2	61.8	69.1	74.4	66.2
P. 5 (%)	68.7	71.6	65.7	73.4	79.2	70.6
P. 95 (%)	60.8	61.9	57.6	64.2	67.7	61.0
Annual Implicit Bias from 85/86 to 04/05 (%)	5.10	5.42	4.70	5.70	6.58	5.28
P. 5 (%)	5.64	6.10	5.21	6.40	7.56	5.93
P. 95 (%)	4.57	4.71	4.20	5.01	5.49	4.60
Cumulative Bias in CPI from 96/97 to 04/05 (%)	9.70	17.30	8.62	11.60	18.90	10.60
P. 5 (%)	16.50	25.10	14.90	20.60	30.00	18.70
P. 95 (%)	− 1.43	4.99	− 1.33	− 2.25	0.61	− 1.89
Annual Implicit Bias from 96/97 to 04/05 (%)	1.13	2.09	1.00	1.36	2.30	1.23
P. 5 (%)	1.99	3.16	1.78	2.54	3.88	2.28
P. 95 (%)	− 0.16	0.57	− 0.15	− 0.25	0.07	− 0.21

Bold numbers indicate bias values estimated
Notes P. 5 and P. 95% correspond to percentile 5 and percentile 95 of 90 percent bootstrap confidence interval. Small set of control variables includes percentage of members ages 0–4, percentage of members ages 5–9, percentage of members ages 10–15, percentage of members ages 15–19, dummies for Capital Federal, male head, spouse present, head has a job, spouse has a job, head and spouse have both a job, owner occupied and free housing occupied. Extended set of control variables includes also percentage of members ages 20–35, percentage of members ages 35–60, number of income recipients, dummies for head self-employed, head employer, household has a last one car, head is married, head is single, head unmarried with spouse, educational levels of heads, and head’s job sectors. Robust standard errors in parentheses. * significant at 10%; ** significant at 5%; *** significant at 1%. Source: Own elaboration based on expenditure surveys

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