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The Translog Utility Function and the Tornqvist Quantity Index

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  • John Hartwick

Abstract

We re-visit the proposition: utility-change for the translog utility function equals the corresponding Tornqvist quantity index. We observe that the "linear" terms in the translog function must be zero for the result to obtain. We also report on the role of the assumption of homogeneity for the utility function in allowing the result to obtain.

Suggested Citation

  • John Hartwick, 2020. "The Translog Utility Function and the Tornqvist Quantity Index," Working Paper 1434, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1434
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1434.pdf
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    References listed on IDEAS

    as
    1. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
    2. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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    More about this item

    Keywords

    translog function; Tornqvist index;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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