alternative to a 3-year file

#1

To apply Joe Grover’s methodology for creating a 3-year file from three single-year downloads, it is necessary to convert income amounts to 1999 equivalents using CPI99, then convert back to the desired data year using a conversion factor from “Table 2. Converting Constant 1999 Dollars to Constant Dollars For Another Base Year.” However, that table provides conversion factors only through 2010. The factor I compute for 2013 (1.40) is only about 1 percentage point higher than the factor given for converting to 2010 equivalents in Table 2 (1.309), so I think there must be some difference in methodology. Can you either explain your methodology or update Table 2 through 2013? Thanks!

#2

The “Alternate Factor” reported in Table 2 is simply the inverse of the CPI99 value found in Table 1 for the respective year. Your calculation of 1.40 for 2013 is correct. This corresponds to nearly 7% inflation from 2010 to 2013 (=(1.40-1.309)/1.309). You can confirm this inflation rate with the official figures here by comparing $100 in 2010 vs. 2013.

Hope this helps.