Quality bias/Definition

This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article.

Quality bias [r]: The tendency of consumer price indexes to overstate inflation because they take no account of the fact that technological advances enable consumers to enjoy a higher living standard without increasing their expenditure, which leads to an understatement of inflation-corrected GDP growth (see Price index).