The apples and oranges theorem for price indices
The question is whether or not there is a generally meaningful way to compute price indices. I explore the duality between price and quantity indices, and present an impossibility result that is analogous to the one for quantity indices.
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"Rationalising the Penn World Table: True Multilateral Indices for International Comparisons of Real Income,"
199622, School of Economics, University College Dublin.
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- Matthijs van Veelen, 2002. "An Impossibility Theorem Concerning Multilateral International Comparison of Volumes," Econometrica, Econometric Society, vol. 70(1), pages 369-375, January.
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- Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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