关键词: 消费者偏好, 科纽斯生活成本指数, 消费者价格指数

Abstract: This paper studies true cost of living for consumers in China between 1998 and 2012 by considering consumer preference to be or not to be a variable. This study shows that ignoring changes in preference structure frequently leads to the overestimation of the consumer’s true cost of living and its growth. Furthermore, the substitution biases are dependent on chosen base year. Based on the above findings, when relevant government departments make policies( especially welfare policies) using consumer price index, an alternative index such as the non-parametric true cost of living index, studied in this paper may be more appropriate than the usual Laspeyres CPI. We would like to suggest that the statistical authorities should also consider routinely compiling and publishing the non-parametric true cost of living index, together with the Laspeyres CPI.

Key words: Consumer Preference, Konyus Cost of Living Index, Consumer Price Index