RPI/CPI User Group

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The RPI Follows an Accounting Approach, Not a Blended Approach, to Owner-Occupied Housing Costs 

07-07-2018 18:22

The approach used for OOH in the RPI is not a blended one: it is the accounting variant of the user cost approach. This approach is not simply a truncated version of the opportunity cost variant of the user cost approach, as the accounting approach includes transaction costs that the opportunity cost approach, as well as the rental equivalence approach, exclude.

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The approach used for OOH in the RPI is not a blended one: it is the accounting variant of the user cost approach.