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Microeconomic Foundations for the Theory of International Comparisons

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  • Armstrong, Keir G.

Abstract

The paper establishes a basis in economic theory for solving the problem of how to make comparisons of aggregate quantities and price levels across two or more geographic regions. To this end, two new classes of relative purchasing power measures are set out and the dual relationships between them are explored.
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Suggested Citation

  • Armstrong, Keir G., 2001. "Microeconomic Foundations for the Theory of International Comparisons," Journal of Economic Theory, Elsevier, vol. 101(2), pages 585-605, December.
    • Handle: RePEc:eee:jetheo:v:101:y:2001:i:2:p:585-605
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    References listed on IDEAS

    as
    1. 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.
    2. S. J. Prais, 1959. "Whose Cost of Living?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 26(2), pages 126-134.
    3. Franklin M. Fisher & Zvi Griliches, 1995. "Aggregate Price Indices, New Goods, and Generics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 229-244.
    4. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72(6), pages 584-584.
    5. Pollak, Robert A., 1981. "The social cost of living index," Journal of Public Economics, Elsevier, vol. 15(3), pages 311-336, June.
    6. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    7. Pollak, Robert A, 1980. "Group Cost-of-Living Indexes," American Economic Review, American Economic Association, vol. 70(2), pages 273-278, May.
    8. Kravis, Irving B & Lipsey, Robert E, 1969. "International Price Comparisons by Regression Methods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(2), pages 233-246, June.
    9. Zvi Griliches, 1961. "Hedonic Price Indexes for Automobiles: An Econometric of Quality Change," NBER Chapters, in: The Price Statistics of the Federal Goverment, pages 173-196, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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