Democratic, Plutocratic and Social Weights in Price Indexes
AbstractThis paper introduces social considerations into the calculation of the price index. To this purpose, recourse is made to the concept of distributional characteristic. It is shown how an aggregate price index can be expressed as a weighted average of commodity-specific prices, with weights that depend on both the aggregate share of consumption and the way in which consumption is distributed across households. The proposed index provides a complementary basis for the analysis of the impact of inflation and for the calculation of its social value.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43978.
Date of creation: Dec 2012
Date of revision:
D60; D63; H00;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D60 - Microeconomics - - Welfare Economics - - - General
- H00 - Public Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-03 (All new papers)
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