Cost Levels and Trends: Using the ECI and ECEC

Wolfson, Melville Z. and Shael N. Wolfson. 2000. “Cost Levels and Trends: Using the ECI and ECEC.” The Earnings Analyst 3: 29-52.


In this paper the authors examine the Employer Cost Index (ECI) and the Employer Costs for Employer Compensation (ECEC) data for state and local government public sector employment. For the ECI, its purpose is to extend the analysis of cost trends to alternative indicators and to identify forecasting equations that help predict rates of change. The analysis examines the components of the ECEC and calculates rates of change for that series, as well. A case example compares the quantitative results that alternative methods produce.