Selected Publications by Mario Marazzi
La economía del conocimiento no es ni una moda ni un proceso novel dentro de la manufactura. Es, ... more La economía del conocimiento no es ni una moda ni un proceso novel dentro de la manufactura. Es, por el contrario, un cambio fundamental en la forma en que los economistas en todas partes del mundo explican los factores que contribuyen al crecimiento económico. La economía del conocimiento es intangible, por lo cual su medición de manera completa y confiable es un reto. Para esto, se computa el Índice de Economía de Conocimiento de Puerto Rico, cuya metodología fue desarrollada por el Banco Mundial. Este se prepara para más de 130 economías de alrededor del mundo, lo cual permite una comparación directa entre éstas. Hasta ahora, Puerto Rico no participa de esta metodología. Aunque relativamente sencilla, esta depende de la recopilación de 83 indicadores que se consideran como buenas métricas de la economía del conocimiento. Los resultados más significativos son:
1) En una escala del 0 al 10, el Índice de Economía del Conocimiento de Puerto Rico en el 2008 fue 6.85, lo cual otorga a Puerto Rico el lugar número 41, de 135 a nivel mundial. Por su parte,
Estados Unidos se posicionó en el número 9, mientras los competidores importantes con Puerto Rico obtuvieron mejor posición: Finlandia (3), Irlanda (11) y Singapur (24). Puerto Rico obtiene el tercer lugar entre las economías latinoamericanas y caribeñas, después de Barbados y Chile.
2) Puerto Rico demuestra el mejor desempeño respecto a cómo su sistema de innovación permite a las empresas, universidades, y centros de investigación usar el conocimiento global y asimilarlo a sus necesidades locales para crear nuevas tecnologías (36 de 141) y en lo relativo a cómo sus incentivos económicos y régimen institucional promueven el uso del conocimiento en actividades económicas (37 de 141). Por otra parte, obtuvo el peor desempeño en relación a la educación y los recursos humanos con los cuales se cuenta para desarrollar, compartir y aplicar el conocimiento eficazmente (53 de 135).
3) Se obtuvieron nuevas estadísticas que por primera vez permiten comparar a Puerto Rico con otras economías en cuanto al número de Artículos científicos y técnicos que Puerto Rico produce, como un ejemplo entre otros.
En este documento se ofrecen, además, una serie de recomendaciones para mejorar la información disponible para medir la economía del conocimiento en Puerto Rico, tales como 1) revisar las cuentas macroeconómicas de Puerto Rico para estar en concordancia con los Sistemas de Cuentas Nacionales de las Naciones Unidas, 2) desarrollar una metodología que permita medir las cuentas macroeconómicas de Puerto Rico por año calendario, 3) realizar una encuesta piloto para las estadísticas de ciencia y tecnología, 4) participar del próximo Estudio Internacional de Tendencias en las Matemáticas y Ciencias, 5) llevar a cabo una encuesta sobre la alfabetización, 6) desarrollar la calidad de las estadísticas sobre matrícula escolar, 7) asegurar que las estadísticas de educación aparezcan en las bases de datos de la UNESCO, 8) asegurar la confiabilidad de las estadísticas de las telecomunicaciones de Puerto Rico según la Unión Internacional de Telecomunicaciones, 9) procurar que Puerto Rico sea incluido en futuras publicaciones de la economía del conocimiento del Banco Mundial y 10) promover la producción de estadísticas sobre la economía del conocimiento por parte de ciertas entidades privadas.
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This paper assesses China's role in Asia as an independent engine of growth, as a conduit of dema... more This paper assesses China's role in Asia as an independent engine of growth, as a conduit of demand from the industrial countries, and as a competitor for export markets. We provide both macroeconomic and microeconomic evidence. The macroeconomic analysis focuses on the
impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth
comovements and VARs. The results suggest an increasing role of China as an independent
source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and finished goods. We find a large role for parts and components trade consistent with China playing an important and increasing role as a conduit. We also estimate some regressions that show that China's increasing presence in export markets has had a negative effect on exports of some products for some other Asian economies, but not for other products, including those of the important electronic high-technology industry.
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One of the most widely accepted principles of economics is the existence of gains
from trade for ... more One of the most widely accepted principles of economics is the existence of gains
from trade for every nation under certain conditions including perfect competition. In the last twenty years, trade economists have revolutionized the field by firmly establishing the possibility of modeling imperfectly competitive international markets. Despite this development, most still agree there are good reasons to believe that gains from trade are still present. However, we show that in the absence of international redistributions the presence of a positive profit sector in a general equilibrium model can lead to a situation in which some nations may lose from the reduction of international trade barriers.
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This paper examines the current thinking on exchange-rate pass-through to both import
prices and ... more This paper examines the current thinking on exchange-rate pass-through to both import
prices and consumer prices and estimates the extent to which they have fallen in the G-7
countries since the late 1970s and 1980s. For import-price pass-through we find that all
countries experience a numerical decline in the responsiveness of import prices to exchange-rate movements; for nearly half of these countries the decline between 1975-1989 and 1990-2004 is statistically significant. We estimate that while a 10 percent depreciation in the local currency would have increased import prices by nearly 7 percent on average across these countries in the late 1970s and 1980s, it would have only increased import prices by 4 percent in the last 15 years. The responsiveness of consumer prices to exchange-rate movements declines for nearly every country, with the decline being statistically significant for two countries. Specifically, while a 10 percent depreciation in the local currency would have increased consumer prices by almost 2 percent on average in the late 1970s and 1980s, it would have had a neutral effect on consumer prices in the last 15 years.
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This paper documents a robust and sustained decline in exchange rate pass-through to U.S. import ... more This paper documents a robust and sustained decline in exchange rate pass-through to U.S. import prices, from well above 0.5 during the 1970s and 1980s to around 0.2 over the last decade. We attribute this decline to the rising prominence of competition from China, a shift in import pricing behavior since the Asian financial crisis, and the reduced share of material-intensive goods in U.S. imports. We also find evidence that foreign exporters are increasingly setting their prices with an eye on U.S. prices. These results, in turn, suggest a new and more general hypothesis linking the decline in pass-through to the evolving nature of competition in global markets and structural changes in international production patterns.
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This paper evaluates the evidence bearing on the question of whether China's buoyant export growt... more This paper evaluates the evidence bearing on the question of whether China's buoyant export growth has led to significant changes in the import prices, and thus inflation performance, of its trading partners. This evidence suggests that the impact of Chinese exports on global import prices has been, while non-negligible, fairly modest. We identify a statistically significant effect of U.S. imports from China on U.S. import prices, but given the size of this effect and the relatively low share of imports in U.S. GDP, the ultimate impact on U.S. consumer prices has likely been quite small. Moreover, imports from China had little apparent effect on U.S. producer prices. Finally, using a multi-country database of trade transactions, we estimate that, since 1993, Chinese exports lowered annual import inflation in a large set of economies by 0.25 percentage point or less on average.
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The Puerto Rico Physicians and Surgeons Guild (Colegio de Médicos Cirujanos de Puerto Rico) reque... more The Puerto Rico Physicians and Surgeons Guild (Colegio de Médicos Cirujanos de Puerto Rico) requested the technical assistance of the Puerto Rico Institute of Statistics (PRIS) to understand a potential bias in the calculation of the Office Rent component of the Geographic Practice Cost Indexes (GPCIs) prepared by the Centers for Medicare and Medicaid Services (CMS). The GPCIs are used to adjust the compensation that physicians receive for providing services under Medicare Part B (see Physician Fee Schedule (PFS)) that may arise as a result of potential differences in the costs of providing Medicare services across different regions of the United States and Puerto Rico.
We present findings regarding CMS’s use of data from the American Community Survey (ACS) and the Puerto Rico Community Survey (PRCS) of the U.S. Census Bureau to estimate the median gross rent of a 2‐bedroom housing unit in different regions of the United States and Puerto Rico, which serves as a proxy for the calculation of the Office Rent component of the GPCIs. In specific, we control for the prevalence of non‐market housing (i.e. public housing) in each PFS payment locality to test for the existence of a bias. We find that:
1) After controlling for non‐market housing, the median gross rent of a 2‐bedroom housing unit changes in a statistically significant way in all PFS payment localities. This provides evidence to support the existence of a bias related to the differential prevalence of non‐market housing in different parts of the United States and Puerto Rico.
2) Amongst all PFS payment localities, Puerto Rico obtains the lowest estimate for the median gross rent of a 2‐bedroom housing unit ($360). Once HUD public housing rent thresholds are applied, Puerto Rico continues to receive the lowest estimate for the median gross‐rent of a 2‐bedroom housing unit ($510). But, in the case of Puerto Rico, this represents a statistically significant increase of 42 percent, by far the largest percentage increase amongst all PFS payment localities.
3) The use of uncontrolled residential rent estimates to proxy for commercial rents introduces a bias associated with factors unrelated to commercial rent markets, such as the prevalence of public housing, amongst others. Doctors in Puerto Rico have been affected more by this statistical bias than doctors in any part of the United States. We estimate that this statistical bias artificially reduces Puerto Rico’s GPCI by about 4 percent. According to a panel of experts, the total economic impact of this bias could reach $120 million annually. We term this bias the “Public Housing Prevalence Bias.”
4) The Department of Housing and Urban Development (HUD) has been using for many years the ACS/PRCS to estimate adequately controlled residential rent estimates, known as Fair Market Rents (FMR). In fact, prior to calendar year 2012, CMS used FMR estimates as the proxy for the Office rent component of the GPCI. But, when CMS switched to using its own uncontrolled residential rent estimates prepared from the ACS/PRCS, Puerto Rico’s Practice Expense GPCI fell by 20 percent, the largest drop of any of the 89 PFS payment localities.
5) There is evidence that suggests that the costs of renting a high‐quality residential housing unit in the San Juan, Puerto Rico Metropolitan Statistical Area, including energy costs, is much higher than properly controlled ACS/PRCS gross rent estimates would suggest. In specific, the Cost of Living Index of the Council for Community and Economic Research based in Arlington, Virginia suggests that the rent plus energy costs in Puerto Rico could be as high as in Beaumont, TX MSA and Chicago, IL MSA.
We recommend several ways that CMS could proceed to correct for the Public Housing Prevalence Bias in the Office Rent component of the Puerto Rico Geographic Practice Cost Index. The remediation of this situation should not have to wait any more time.
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Papers by Mario Marazzi
stimulate discussion and critical comment. References in publications to International Finance Di... more stimulate discussion and critical comment. References in publications to International Finance Discussion Papers (other than an acknowledgment that the writer has had access to unpublished material) should be cleared with the author or authors. Recent IFDPs are available on the Web at www.federalreserve.gov/pubs/ifdp/. Is China “Exporting Deflation”?
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The Puerto Rico Institute of Statistics published the 2010 adult literacy survey for Puerto Rico,... more The Puerto Rico Institute of Statistics published the 2010 adult literacy survey for Puerto Rico, filling a lapse of 20 year without adult literacy data.
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SSRN Electronic Journal, 2000
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SSRN Electronic Journal, 2000
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This paper assesses China's role in Asia as an independent engine of growth and as a conduit... more This paper assesses China's role in Asia as an independent engine of growth and as a conduit of demand from the industrial countries. We provide both macroeconomic and microeconomic evidence. The macroeconomic analysis focuses on the impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth comovements and VARs. The results suggest an increasing role of China as an independent source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and …nished goods. We …nd a large role for parts and components trade consistent with China also playing an important role as a conduit.
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Selected Publications by Mario Marazzi
1) En una escala del 0 al 10, el Índice de Economía del Conocimiento de Puerto Rico en el 2008 fue 6.85, lo cual otorga a Puerto Rico el lugar número 41, de 135 a nivel mundial. Por su parte,
Estados Unidos se posicionó en el número 9, mientras los competidores importantes con Puerto Rico obtuvieron mejor posición: Finlandia (3), Irlanda (11) y Singapur (24). Puerto Rico obtiene el tercer lugar entre las economías latinoamericanas y caribeñas, después de Barbados y Chile.
2) Puerto Rico demuestra el mejor desempeño respecto a cómo su sistema de innovación permite a las empresas, universidades, y centros de investigación usar el conocimiento global y asimilarlo a sus necesidades locales para crear nuevas tecnologías (36 de 141) y en lo relativo a cómo sus incentivos económicos y régimen institucional promueven el uso del conocimiento en actividades económicas (37 de 141). Por otra parte, obtuvo el peor desempeño en relación a la educación y los recursos humanos con los cuales se cuenta para desarrollar, compartir y aplicar el conocimiento eficazmente (53 de 135).
3) Se obtuvieron nuevas estadísticas que por primera vez permiten comparar a Puerto Rico con otras economías en cuanto al número de Artículos científicos y técnicos que Puerto Rico produce, como un ejemplo entre otros.
En este documento se ofrecen, además, una serie de recomendaciones para mejorar la información disponible para medir la economía del conocimiento en Puerto Rico, tales como 1) revisar las cuentas macroeconómicas de Puerto Rico para estar en concordancia con los Sistemas de Cuentas Nacionales de las Naciones Unidas, 2) desarrollar una metodología que permita medir las cuentas macroeconómicas de Puerto Rico por año calendario, 3) realizar una encuesta piloto para las estadísticas de ciencia y tecnología, 4) participar del próximo Estudio Internacional de Tendencias en las Matemáticas y Ciencias, 5) llevar a cabo una encuesta sobre la alfabetización, 6) desarrollar la calidad de las estadísticas sobre matrícula escolar, 7) asegurar que las estadísticas de educación aparezcan en las bases de datos de la UNESCO, 8) asegurar la confiabilidad de las estadísticas de las telecomunicaciones de Puerto Rico según la Unión Internacional de Telecomunicaciones, 9) procurar que Puerto Rico sea incluido en futuras publicaciones de la economía del conocimiento del Banco Mundial y 10) promover la producción de estadísticas sobre la economía del conocimiento por parte de ciertas entidades privadas.
impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth
comovements and VARs. The results suggest an increasing role of China as an independent
source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and finished goods. We find a large role for parts and components trade consistent with China playing an important and increasing role as a conduit. We also estimate some regressions that show that China's increasing presence in export markets has had a negative effect on exports of some products for some other Asian economies, but not for other products, including those of the important electronic high-technology industry.
from trade for every nation under certain conditions including perfect competition. In the last twenty years, trade economists have revolutionized the field by firmly establishing the possibility of modeling imperfectly competitive international markets. Despite this development, most still agree there are good reasons to believe that gains from trade are still present. However, we show that in the absence of international redistributions the presence of a positive profit sector in a general equilibrium model can lead to a situation in which some nations may lose from the reduction of international trade barriers.
prices and consumer prices and estimates the extent to which they have fallen in the G-7
countries since the late 1970s and 1980s. For import-price pass-through we find that all
countries experience a numerical decline in the responsiveness of import prices to exchange-rate movements; for nearly half of these countries the decline between 1975-1989 and 1990-2004 is statistically significant. We estimate that while a 10 percent depreciation in the local currency would have increased import prices by nearly 7 percent on average across these countries in the late 1970s and 1980s, it would have only increased import prices by 4 percent in the last 15 years. The responsiveness of consumer prices to exchange-rate movements declines for nearly every country, with the decline being statistically significant for two countries. Specifically, while a 10 percent depreciation in the local currency would have increased consumer prices by almost 2 percent on average in the late 1970s and 1980s, it would have had a neutral effect on consumer prices in the last 15 years.
We present findings regarding CMS’s use of data from the American Community Survey (ACS) and the Puerto Rico Community Survey (PRCS) of the U.S. Census Bureau to estimate the median gross rent of a 2‐bedroom housing unit in different regions of the United States and Puerto Rico, which serves as a proxy for the calculation of the Office Rent component of the GPCIs. In specific, we control for the prevalence of non‐market housing (i.e. public housing) in each PFS payment locality to test for the existence of a bias. We find that:
1) After controlling for non‐market housing, the median gross rent of a 2‐bedroom housing unit changes in a statistically significant way in all PFS payment localities. This provides evidence to support the existence of a bias related to the differential prevalence of non‐market housing in different parts of the United States and Puerto Rico.
2) Amongst all PFS payment localities, Puerto Rico obtains the lowest estimate for the median gross rent of a 2‐bedroom housing unit ($360). Once HUD public housing rent thresholds are applied, Puerto Rico continues to receive the lowest estimate for the median gross‐rent of a 2‐bedroom housing unit ($510). But, in the case of Puerto Rico, this represents a statistically significant increase of 42 percent, by far the largest percentage increase amongst all PFS payment localities.
3) The use of uncontrolled residential rent estimates to proxy for commercial rents introduces a bias associated with factors unrelated to commercial rent markets, such as the prevalence of public housing, amongst others. Doctors in Puerto Rico have been affected more by this statistical bias than doctors in any part of the United States. We estimate that this statistical bias artificially reduces Puerto Rico’s GPCI by about 4 percent. According to a panel of experts, the total economic impact of this bias could reach $120 million annually. We term this bias the “Public Housing Prevalence Bias.”
4) The Department of Housing and Urban Development (HUD) has been using for many years the ACS/PRCS to estimate adequately controlled residential rent estimates, known as Fair Market Rents (FMR). In fact, prior to calendar year 2012, CMS used FMR estimates as the proxy for the Office rent component of the GPCI. But, when CMS switched to using its own uncontrolled residential rent estimates prepared from the ACS/PRCS, Puerto Rico’s Practice Expense GPCI fell by 20 percent, the largest drop of any of the 89 PFS payment localities.
5) There is evidence that suggests that the costs of renting a high‐quality residential housing unit in the San Juan, Puerto Rico Metropolitan Statistical Area, including energy costs, is much higher than properly controlled ACS/PRCS gross rent estimates would suggest. In specific, the Cost of Living Index of the Council for Community and Economic Research based in Arlington, Virginia suggests that the rent plus energy costs in Puerto Rico could be as high as in Beaumont, TX MSA and Chicago, IL MSA.
We recommend several ways that CMS could proceed to correct for the Public Housing Prevalence Bias in the Office Rent component of the Puerto Rico Geographic Practice Cost Index. The remediation of this situation should not have to wait any more time.
Papers by Mario Marazzi
1) En una escala del 0 al 10, el Índice de Economía del Conocimiento de Puerto Rico en el 2008 fue 6.85, lo cual otorga a Puerto Rico el lugar número 41, de 135 a nivel mundial. Por su parte,
Estados Unidos se posicionó en el número 9, mientras los competidores importantes con Puerto Rico obtuvieron mejor posición: Finlandia (3), Irlanda (11) y Singapur (24). Puerto Rico obtiene el tercer lugar entre las economías latinoamericanas y caribeñas, después de Barbados y Chile.
2) Puerto Rico demuestra el mejor desempeño respecto a cómo su sistema de innovación permite a las empresas, universidades, y centros de investigación usar el conocimiento global y asimilarlo a sus necesidades locales para crear nuevas tecnologías (36 de 141) y en lo relativo a cómo sus incentivos económicos y régimen institucional promueven el uso del conocimiento en actividades económicas (37 de 141). Por otra parte, obtuvo el peor desempeño en relación a la educación y los recursos humanos con los cuales se cuenta para desarrollar, compartir y aplicar el conocimiento eficazmente (53 de 135).
3) Se obtuvieron nuevas estadísticas que por primera vez permiten comparar a Puerto Rico con otras economías en cuanto al número de Artículos científicos y técnicos que Puerto Rico produce, como un ejemplo entre otros.
En este documento se ofrecen, además, una serie de recomendaciones para mejorar la información disponible para medir la economía del conocimiento en Puerto Rico, tales como 1) revisar las cuentas macroeconómicas de Puerto Rico para estar en concordancia con los Sistemas de Cuentas Nacionales de las Naciones Unidas, 2) desarrollar una metodología que permita medir las cuentas macroeconómicas de Puerto Rico por año calendario, 3) realizar una encuesta piloto para las estadísticas de ciencia y tecnología, 4) participar del próximo Estudio Internacional de Tendencias en las Matemáticas y Ciencias, 5) llevar a cabo una encuesta sobre la alfabetización, 6) desarrollar la calidad de las estadísticas sobre matrícula escolar, 7) asegurar que las estadísticas de educación aparezcan en las bases de datos de la UNESCO, 8) asegurar la confiabilidad de las estadísticas de las telecomunicaciones de Puerto Rico según la Unión Internacional de Telecomunicaciones, 9) procurar que Puerto Rico sea incluido en futuras publicaciones de la economía del conocimiento del Banco Mundial y 10) promover la producción de estadísticas sobre la economía del conocimiento por parte de ciertas entidades privadas.
impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth
comovements and VARs. The results suggest an increasing role of China as an independent
source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and finished goods. We find a large role for parts and components trade consistent with China playing an important and increasing role as a conduit. We also estimate some regressions that show that China's increasing presence in export markets has had a negative effect on exports of some products for some other Asian economies, but not for other products, including those of the important electronic high-technology industry.
from trade for every nation under certain conditions including perfect competition. In the last twenty years, trade economists have revolutionized the field by firmly establishing the possibility of modeling imperfectly competitive international markets. Despite this development, most still agree there are good reasons to believe that gains from trade are still present. However, we show that in the absence of international redistributions the presence of a positive profit sector in a general equilibrium model can lead to a situation in which some nations may lose from the reduction of international trade barriers.
prices and consumer prices and estimates the extent to which they have fallen in the G-7
countries since the late 1970s and 1980s. For import-price pass-through we find that all
countries experience a numerical decline in the responsiveness of import prices to exchange-rate movements; for nearly half of these countries the decline between 1975-1989 and 1990-2004 is statistically significant. We estimate that while a 10 percent depreciation in the local currency would have increased import prices by nearly 7 percent on average across these countries in the late 1970s and 1980s, it would have only increased import prices by 4 percent in the last 15 years. The responsiveness of consumer prices to exchange-rate movements declines for nearly every country, with the decline being statistically significant for two countries. Specifically, while a 10 percent depreciation in the local currency would have increased consumer prices by almost 2 percent on average in the late 1970s and 1980s, it would have had a neutral effect on consumer prices in the last 15 years.
We present findings regarding CMS’s use of data from the American Community Survey (ACS) and the Puerto Rico Community Survey (PRCS) of the U.S. Census Bureau to estimate the median gross rent of a 2‐bedroom housing unit in different regions of the United States and Puerto Rico, which serves as a proxy for the calculation of the Office Rent component of the GPCIs. In specific, we control for the prevalence of non‐market housing (i.e. public housing) in each PFS payment locality to test for the existence of a bias. We find that:
1) After controlling for non‐market housing, the median gross rent of a 2‐bedroom housing unit changes in a statistically significant way in all PFS payment localities. This provides evidence to support the existence of a bias related to the differential prevalence of non‐market housing in different parts of the United States and Puerto Rico.
2) Amongst all PFS payment localities, Puerto Rico obtains the lowest estimate for the median gross rent of a 2‐bedroom housing unit ($360). Once HUD public housing rent thresholds are applied, Puerto Rico continues to receive the lowest estimate for the median gross‐rent of a 2‐bedroom housing unit ($510). But, in the case of Puerto Rico, this represents a statistically significant increase of 42 percent, by far the largest percentage increase amongst all PFS payment localities.
3) The use of uncontrolled residential rent estimates to proxy for commercial rents introduces a bias associated with factors unrelated to commercial rent markets, such as the prevalence of public housing, amongst others. Doctors in Puerto Rico have been affected more by this statistical bias than doctors in any part of the United States. We estimate that this statistical bias artificially reduces Puerto Rico’s GPCI by about 4 percent. According to a panel of experts, the total economic impact of this bias could reach $120 million annually. We term this bias the “Public Housing Prevalence Bias.”
4) The Department of Housing and Urban Development (HUD) has been using for many years the ACS/PRCS to estimate adequately controlled residential rent estimates, known as Fair Market Rents (FMR). In fact, prior to calendar year 2012, CMS used FMR estimates as the proxy for the Office rent component of the GPCI. But, when CMS switched to using its own uncontrolled residential rent estimates prepared from the ACS/PRCS, Puerto Rico’s Practice Expense GPCI fell by 20 percent, the largest drop of any of the 89 PFS payment localities.
5) There is evidence that suggests that the costs of renting a high‐quality residential housing unit in the San Juan, Puerto Rico Metropolitan Statistical Area, including energy costs, is much higher than properly controlled ACS/PRCS gross rent estimates would suggest. In specific, the Cost of Living Index of the Council for Community and Economic Research based in Arlington, Virginia suggests that the rent plus energy costs in Puerto Rico could be as high as in Beaumont, TX MSA and Chicago, IL MSA.
We recommend several ways that CMS could proceed to correct for the Public Housing Prevalence Bias in the Office Rent component of the Puerto Rico Geographic Practice Cost Index. The remediation of this situation should not have to wait any more time.