Cause and analysis of cost of living allowance fluctuation in  Yokosuka, Japan
By: William Patrick Wood
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1996
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 59
Description: In June 1995, an unexpected decrease in COLA index on the Kanto Plain of Japan, to include the Yokosuka      area, caused concern amongst service members stationed in this area. The purchasing power of the dollar was in      decline when compared to the yen and all other economic indicators at the time of the COLA decrease      suggested that the COLA index should have increased or at least remained constant. What explains the apparent      inconsistency between the declining value of the dollar relative to the yen and the concurrent decrease in COLA      provided to service members? This thesis conducted a critical analysis of the procedures and methods used by      the Per Diem, Travel and Transportation Allowance Commiflee (PDTATAC) to calculate the cost of living      allowance (COLA) index and determine the cause and effect of the June 1995 decrease in COLA index. This      thesis addressed the policies of the COLA system, utilizing both historical data and a stylized model, to determine      if they are equitable from an economic standpoint. The analysis revealed that the Living Pattern Survey (LPS)      was a viable tool to obtain information on where service members made purchases, if exchange rates were      stable. If exchange rates were increasing, the LPS prevented overpayment of service members. If exchange rates      were declining, the LPS reduced the 'purchasing power' of service members.
Notes: Thesis advisor(s): William R. Gates, O. Moses.

"June 1996."

Thesis (M.S. in Management) Naval Postgraduate School, June 1996.

Includes bibliographical references (p. 57)

Approved for public release; distribution unlimited.

Also available online.

Mode of access: World Wide Web.

System requirements: Adobe Acrobat Reader.

US Navy (USN) author.

dk/dk cc:9996 12/13/96