Replication data for: Internet Rising, Prices Falling: Measuring Inflation in a World of E-Commerce

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Project Citation:

Goolsbee, Austan D., and Klenow, Peter J. Replication data for: Internet Rising, Prices Falling: Measuring Inflation in a World of E-Commerce. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114446V1

Project Description

Summary: The rise of ecommerce and the contrasts between online and traditional retail pricing behavior have raised questions about potential bias in CPI inflation. Using new data on online transactions, this paper shows that aggregate matched-model inflation online from 2014–2017 was more than a full percentage point lower than in the corresponding CPI. In addition, new products were tremendously important. Quantifying the net increase in number of new goods minus the exit of old goods suggests that actual inflation online may have been an additional 1.5 to 2.5 percentage points lower than indicated in matched model price indices like the CPI.

Scope of Project

JEL Classification:
      E31 Price Level; Inflation; Deflation
      L81 Retail and Wholesale Trade; e-Commerce
      L86 Information and Internet Services; Computer Software

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Published Versions

V1 [2019-10-13]

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DDI 2.5

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