TY  - BOOK
AU  -  Loewenstein, Lara
AU  -  Montag, Hugh
AU  -  Verbrugge, Randal
AU  - 2024
AU  - Adams, Brian
TI  - Disentangling Rent Index Differences: Data, Methods, and Scope
SN  - 2640-205X
PB  - American Economic Review: Insights
KW  -  Deflation, Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications, Monetary Policy, Housing Supply and Markets
KW  -  Price Level
KW  - Inflation
N2  - Rent measurement determines 32 percent of the CPI. Accurate rent measurement is therefore essential for accurate inflation measurement, but the CPI rent index often differs from alternative rent inflation measures. Using repeat-rent inflation measures created from CPI microdata, we show that this discrepancy is largely explained by differences in rent growth for new tenants relative to all tenants. New-tenant rent inflation provides information about future all-tenant rent inflation, but the use of new-tenant rents is contraindicated in a cost-of-living index such as the CPI. Nevertheless, policy-makers should integrate new-tenant inflation into inflation forecasts and monetary policy decisions
UR  - https://www.aeaweb.org/articles?id=10.1257/aeri.20220685
ER  -