Cross-nation examination of CCI and CPI with an emphasis on Korea

This thesis examines the relationship between Consumer Price Index (CPI) and Consumer Confidence Index (CCI) in Ko rea for 6 years (Jan. 1999 -Dec. 2004). Results show that the CPI annual difference had a negative correlation with the CCI from one year past but it changed to positive for the second year past. CCI had only a negative correlation with past CPI annual difference for the most recent 6 months. This study is also conducted for other countries (Japan, Taiwan; Germany, Netherlands, Greece, France, U.K. Spain; U.S.A.). Cluster analysis grouped these countries into three clusters according to similarity of the CCI trend: U.S.A., Taiwan and Korea; U.K. and Japan; Germany, Spain, Netherlands, France and Greece . Also, four groups according to similarity of the CPI trend: U.S.A. and Taiwan; U.K. and J apan; France, Korea, Germany, Spain, Greece and Netherlands. KEY WORDS : Consumer Price Index, Consumer Expectation Index, Consumer Confidence Index, Korea, Financial Crisis, 9/11 terror attack, Iraq war, Euro, Correlation, Cluster Analysis CROSS-NATION EXAMINATION OF CCI AND CPI WITH AN EMPHASIS ON KOREA by EUN-JEONG LEE B.S. Seoul National University in Korea, 1991 M.P.A. Seoul National University in Korea, 1999 A Thesis Submitted to the Graduate Faculty of the University of Georgia in Partial Fulfillment of the Requirements for the Degree MASTER OF SCIENCE ATHENS, GEORGIA 2005