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A Restricted-Domain Multilateral Test Approach to the Theory of International Comparisons(revised and extended version of CEP 96-03)

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Abstract

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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File URL: http://www1.carleton.ca/economics/research/working-papers/carleton-economic-papers-cep/1991-2000/
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Bibliographic Info

Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 99-16.

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Length: 62 pages
Date of creation: Sep 1999
Date of revision: Feb 2003
Publication status: Published: – further revised version in International Economic Review, Vol. 44, No. 1 (February 2003), pp. 31–86
Handle: RePEc:car:carecp:99-16

Note: revised & extended version of CEP 96-03
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Keywords: Index numbers; test approaches to index number theory; multilateral comparisons; purchasing power parities.;

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