The Boskin Commission Report: A Retrospective One Decade Later

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Abstract

This article by a Boskin Commission member provides a retrospective assessment of the Commission’s 1996 finding that the U.S. CPI overstated inflation by 1.1 percentage points per year. The author reviews methodological changes to the CPI since the report, updates the bias estimate based on new research on apparel, rental housing, and upper-level substitution, and concludes that the bias in 1995-96 should have been estimated at 1.2-1.3 percentage points. He estimates the current upward bias at about 0.8 percentage points, or 1.0 points when accounting for new products and increased longevity.

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