Abstract
The quality change bias in the Consumer Price Index (CPI) is one of the biases most often discussed. Adjusting for changes in product quality is a major problem which those who deal with price indices must face. Some experts argue that the largest share of the bias in the CPI arises from the failure to make adequate adjustment for changes in the quality of the goods and services people buy. Most of the ECE member countries have procedures in place which are designed to account for changes in the quality of the items which are priced. Hedonic methods are obviously of increasing importance in some countries although there are still some reservations about these.
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