Measuring the Cost of Quality

The Consumer Price Index has a built-in upward bias which creates an erroneous impression of actual living costs, according to Prof. Richard Ruggles of Yale, who believes that because of its failure to reflect quality improvements, the index has a Built-In upward bias.

Abstract

curate barometer of changes in the cost of living? Although the cost of medical care, for example, has risen 30 per cent over the past eight years, there have been offsetting medical advances of immeasurable value. Prof. Richard Ruggles of Yale believes that because of its failure to reflect quality improvements, the index has a built-in upward bias which creates an erroneous impression of actual living costs.