“Estimating Real Income in the United States 1888^–₁₀₆1994_30ya: Correcting CPI Bias Using Engel Curves”, Dora L. Costa2001-12 (economics; backlinks; similar)⁠:

This paper provides the first estimates of overall CPI bias prior to the 1970s and new estimates of bias since the 1970s.

It finds [using Engel curves] that annual CPI bias was −0.1% 1888^–₃₁1919_105ya and rose to 0.7% between 1919 and 1935. Annual CPI bias was 0.4% in the 1960s and then rose to 2.7% between 1972 and 1982 before falling to 0.6% 1982^–₁₂1994_30ya.

The findings imply that we have underestimated growth rates in true income in the 1920s and 1930s and in the 1970s.

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