An improved long-run consumer price index for the United States

The consumer price index series in the Historical Statistics of the United States, millennial edition, is improved via construction of a new long-run consumer price index series. For a component series, the author uses a neglected series developed by Paul Douglas. Although differences between the Historical Statistics series and the new series are not large, the Historical Statistics series nevertheless exhibits both conceptual and computational weaknesses when compared with the new series. Furthermore, the Historical Statistics series systematically diverges from the new series. In effect, the Historical Statistics series has two segments, which are improperly linked. Empirical evidence suggests the superior representativeness of the new series.