The Study Of Owner-Occupied Housing In CPI Of China

As a macroeconomic index,CPI reflects the level of inflatation and can be used as a proof of reward for wage and welfare,providing support for leaders across the world when making economic decisions and acquiring worldwide attention thereafter.Till now,the calculation of CPI has a long history.However,a lot of unsolvable problems still exist,among which the housing problem is the most complex one.In this paper,the author starts her research in both theoretical and practical ways.Theoretically,we made a complete explanation of the basic theories of the calculation of CPI,including the theory framework,measurement targets,framework of CPI. These contents are highly relevant with the owner-occupied housing problem.We also introduced the calulation of housing in current China and some new ways adopted in foreign countries.In the empirical part,we calculated the expenditure of housing with the current calculation method and some simplified ways of user cost approachs,using the historical data of2000-2012in China.Based on this,we adjusted the weights of consumption goods in CPI,and then got the CPI.The housing expenditure calculated in this paper is higher than that released by the State Bureau of Statistics,especially that calculated with the simplified user cost approach and consumption cost approach.The estimation of CPI is relatively closer with that data released,but with a relatively large volatility.The disbelief on CPI by the Chinese public mainly focuses on the fact that CPI could not reflect the rocketing housing price.This paper is trying to raise the weight of housing consumption and find out a more reasonable way of calculating CPI.