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September 2006, Vol. 129,
No. 9
Interarea price levels: an experimental methodology
Bettina Aten
Economist, Regional Economics Directorate, Bureau of Economic Analysis.
Email: Bettina.Aten@bea.gov
This article was written in collaboration with Walter Lane, a supervisory economist in the Consumer Price Index Division, Bureau of Labor Statistics. The results presented here are the responsibility of the author and not the Bureau of Labor Statistics or the Bureau of Economic Analysis.
Differences in relative price levels for areas of the United States can be estimated with a modified Country-Product-Dummy (CPD) method often used in international comparisons of the purchasing power of currencies; CPI observations and CE weights are used to estimate experimental price level differentials for 2003 and 2004.
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