Measuring regional cost of living

Accurate measures of regional cost of living are vital to businesses and in dividuals. We compare a commonly used regional cost-of-living index, produc ed by the American Chamber of Commerce Research Association (ACCRA), to an index we calculate using Consumer Price Index data and research from Kokosk i, Cardiff, and Moulton. We find significant differences between the ACCRA and the new indexes that are likely due to theoretical design, data collect ion, and sampling design The comparison of these indexes highlights sources of differences in regional cost-of-living measures and suggests caution in the use of ACCRA indexes.