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| Using the Consumer Price Index in
Forecasting for Small Geographic Areas Author: Joseph S. Rabianski, Julian Diaz, III, and Neil G. Carn Start Page: 391 Abstract: The usefulness of the
consumer price index (CPI) as a tool for updating and forecasting income and house values
in small geographic market areas is explored in this paper. The topic is introduced by
briefly discussing the construction of the CPI and its traditional use as an updating
index. The accuracy of such employment is examined statistically with data from 191 census
tracts in the metropolitan Atlanta area. For the data set examined, use of the CPI for
updating both income and house values is associated with significant and systematic error
and bias calling into question its usefulness. |
