Affiliations: [a] Department of Economics, Uppsala University, Uppsala,
Sweden | [b] Department of Trade and Policy Development, National
Board of Trade, Stockholm, Sweden | [c] The Swedish National Audit Office, Stockholm,
Sweden
Correspondence:
[*]
Corresponding author: N. Anders Klevmarken,
Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala,
Sweden. Tel.: +46 532 20333; E-mail:
[email protected]
Abstract: A long lasting controversy in Sweden as well as internationally is how to best
estimate a price on the services of owner occupied housing in a consumer price
index. There is no international consensus and different approaches have been
adopted. In this article we use a true cost-of-living index previously suggested
by one of the authors, apply the model to Swedish data and compare the results
to the official Swedish consumer price index. We find that the official index
has underestimated changes in the cost-of-living and suggest a region in which a
better approximation should lie.
