Re: [Gretl-users] Correcting for inflation

the problem I have was 'matching' the CPI data to the records - I have 400,000 records and was not sure how to match the right CPI to each one (or, how to create 400,000 CPI records in the same order as the other observations). Is there a straight forward way to do that? "I often see problems in the world and wonder why someone doesn't fix them. Then I realize that I am someone, and that makes me feel bad because it is all my fault." http://dilbert.com/blog/entry/fixing_the_world/ ________________________________ From: Allin Cottrell <cottrell(a)wfu.edu&gt; To: Gretl list <gretl-users(a)lists.wfu.edu&gt; Sent: Saturday, April 11, 2009 4:15:01 AM Subject: Re: [Gretl-users] Correcting for inflation On Fri, 10 Apr 2009, Raz Lev wrote: The usual precedure for deflating a nominal variable is simply to divide by a price index (with a possible scale factor to equate the real and nominal values in a chosen base period). For example, suppose I have nominal wage bill data and data on the CPI: wages CPI 1983:1 1629.5 98.0000 1983:2 1661.8 99.1333 1983:3 1699.0 100.1000 1983:4 1748.1 101.1000 1984:1 1794.0 102.5333 1984:2 1837.9 103.5000 1984:3 1877.3 104.4000 1984:4 1911.1 105.3000 Then I might choose a base period -- say, 1993:3, and do genr realwages = wages * CPI[1983:3] / CPI Allin _______________________________________________ Gretl-users mailing list Gretl-users(a)lists.wfu.edu http://lists.wfu.edu/mailman/listinfo/gretl-users