IDEAS home Printed from https://ideas.repec.org/p/usi/wpaper/506.html
   My bibliography  Save this paper

Price-Level Computation: Illustrations

Author

Listed:
  • Sydney N. Afriat
  • Carlo Milana

Abstract

It has been submitted that, for the very large number of different traditional type formulae to determine price indices associated with a pair of periods, which are joined with the longstanding question of which one to choose, they should all be abandoned. For the method proposed instead, price levels associated with periods are first all computed together, subject to a consistency of the data, and then price indices that are true taken together are determined from their ratios. An approximation method can apply in the case of inconsistency. Here are illustrations of the method.

Suggested Citation

  • Sydney N. Afriat & Carlo Milana, 2007. "Price-Level Computation: Illustrations," Department of Economics University of Siena 506, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:506
    as

    Download full text from publisher

    File URL: http://repec.deps.unisi.it/quaderni/506.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sydney Afriat & Carlo Milana, 2007. "The Super Price Index: Irving Fisher, and after," Department of Economics University of Siena 492, Department of Economics, University of Siena.
    2. Stone,Richard, 2013. "The Role of Measurement in Economics," Cambridge Books, Cambridge University Press, number 9781107673861.
    3. Fisher,Franklin M. & Shell,Karl, 1998. "Economic Analysis of Production Price Indexes," Cambridge Books, Cambridge University Press, number 9780521556231.
    4. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    5. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
    6. Dowrick, Steve & Quiggin, John, 1994. "International Comparisons of Living Standards and Tastes: A Revealed-Preference Analysis," American Economic Review, American Economic Association, vol. 84(1), pages 332-341, March.
    7. Sydney Afriat & Carlo Milana, 2007. "The Price-Level Computation Method," Department of Economics University of Siena 499, Department of Economics, University of Siena.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. W. Erwin Diewert & Kevin J. Fox, 2017. "Decomposing Value Added Growth into Explanatory Factors," Discussion Papers 2017-02, School of Economics, The University of New South Wales.
    2. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    3. Hillinger Claude, 2003. "The Money Metric, Price and Quantity Aggregation and Welfare Measurement," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-36, July.
    4. Maurice Obstfeld, 1985. "The Capital Inflows Problem Revisited: A Stylized Model of Southern Cone Disinflation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(4), pages 605-625.
    5. Erwin Ooghe & Erik Schokkaert & Hannes Serruys, 2023. "Fair Earnings Tax Reforms," CESifo Working Paper Series 10242, CESifo.
    6. Nicholas Oulton, 2023. "The effect of changes in the terms of trade on GDP and welfare: A Divisia approach to the System of National Accounts," Manchester School, University of Manchester, vol. 91(4), pages 261-282, July.
    7. FLEURBAEY, Marc & SCHOKKAERT, Erik, 2011. "Equity in health and health care," LIDAM Discussion Papers CORE 2011026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Gorbunov, Vladimir, 2021. "Market demand: a holistic theory and its verification," MPRA Paper 109154, University Library of Munich, Germany.
    9. Jack E. Triplett, 1983. "Introduction: An Essay on Labor Cost," NBER Chapters, in: The Measurement of Labor Cost, pages 1-60, National Bureau of Economic Research, Inc.
    10. Nelson Manolo Chávez Munoz, Omaira Dayana Velázquez Mantilla, Mauricio Alejandro Mateus Tovar, 2011. "Cambios estructurales en la participación laboral en Colombia desde 1984 - 2008: un análisis econométrico del mercado laboral urbano para la generación de políticas de empleo," Revista CIFE, Universidad Santo Tomás, June.
    11. Teklewold, Hailemariam, 2011. "Farming or burning? shadow prices and farmer’s impatience on the allocation of multi-purpose resource in the mixed farming system of Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116080, European Association of Agricultural Economists.
    12. Claude Hillinger, 2002. "A General Theory of Price and Quantity Aggregation and Welfare Measurement," CESifo Working Paper Series 818, CESifo.
    13. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.
    14. Rajeev K. Goel & Shoji Haruna, 2021. "Unmasking the demand for masks: Analytics of mandating coronavirus masks," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 580-591, July.
    15. Angela Daley & Thesia I. Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across Place and Time in Household Expenditure Patterns: Implications for the Estimation of Equivalence Scales," Economic Working Papers 520, Bureau of Labor Statistics.
    16. T.R.L. Fry & R.D. Brooks & Br. Comley & J. Zhang, 1993. "Economic Motivations for Limited Dependent and Qualitative Variable Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 193-205, June.
    17. Lee, Jonq-Ying & Brown, Mark G. & Schwartz, Brooke, 1986. "The Demand For National Brand And Private Label Frozen Concentrated Orange Juice: A Switching Regression Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(1), pages 1-7, July.
    18. Marie-Estelle Binet, 2013. "The Linear Expenditure System and the Demand for Municipal Public Services: The Median Voter Specification Revisited," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1689-1703, July.
    19. Redding, Stephen J. & Weinstein, David E., 2016. "A unified approach to estimating demand and welfare," LSE Research Online Documents on Economics 67681, London School of Economics and Political Science, LSE Library.
    20. Richard Chisik & Nazanin Behzadan & Harun Onder & Apurva Sanghi, 2016. "Aid, Remittances, the Dutch Disease, Refugees, and Kenya," Working Papers 062, Ryerson University, Department of Economics.

    More about this item

    Keywords

    index-number problem; inflation; non-parametric; price index; price level; revealed preference.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usi:wpaper:506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fabrizio Becatti (email available below). General contact details of provider: https://edirc.repec.org/data/desieit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.