This paper develops a novel multilateral test approach to the problem of international comparisons. Many of the associated tests are justi¯ed as \reasonable" using the fact that they are direct analogues to properties of the cost-of-living index. Further support is bestowed upon the new approach by showing that it is equivalent to an extended version of Diewert's (1986) multilateral test approach. Finally, a number of alternative multilateral comparison formulae are evaluated and the relative superiority of two of them is established.
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Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number
99-16.
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