The Boskin Commission Report After a Decade

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Abstract

This article assesses the Boskin Commission Report’s worldwide influence, its parts that have and have not stood up to scrutiny, and its neglected recommendation on CPI classifications. The author highlights the Commission’s international impact — triggering external reviews of CPIs in countries that had never before subjected their price statistics to outside scrutiny — while noting that the Commission’s analysis of quality change bias may have overstated the upward bias by not allowing for the possibility of over-adjustment, and that the Commission’s treatment of basic CPI components has been superseded by more recent research on consumer search behaviour.

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