The Modification Study Of The Consumer Price Index Based On Layered Correction

With the development of China’s economic society, people’s income gap is widening. But the present consumer price index has drawbacks in describing real living cost of residents of different income-levels. Thus, it can’t meet with the need of people’s desire to assess their living cost influenced by price. Through studying how to classify residents and the characters of each income-level classification, this paper corrects the layered price index and provides reference for each income-level residents to judge their real living costs and provides theoretical reference for China to formulate welfare policy targeting at different income-level residents. Studying the price index based on layered correction is complement and perfection of the present price index and is of theoretical significance and practical application value.Firstly, this paper reviews the compilation method of the current price index. This paper simply describes the history of the survey of the index and the meaning and applications of the index, and makes example of how to calculate the consumer price index. This paper also describes the limitations of the index in its compilation method. Secondly, this paper makes correction study of the layered consumer price index. This paper chooses and analyzes the life necessities of different income-level residents based on economics and mathematical methods and puts forward the calculation method of layered consumer price index. Thirdly, this paper makes empirical study based on Tianjin city and makes assessment of the layered price index. It makes comparison between the layered indexes of the large classification of goods and between the current and the layered index of Tianjin city and describes the application of the layered price index. Finally, this paper summarizes the compilation method of the layered price index and puts forward of the limitation of this paper and the future research directions.Based on the price index theory, this paper combines the economic theory and the statistical method to improve the compilation method of the price index which reflects comprehensive changes of price. And this paper puts forward the rationality of the layered consumer price index and chooses the representative products for each income-level residents and calculates the real layered price index of Tianjin city.