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A cost of living index incorporating a network effect

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  • Gary Madden
  • Grant Coble-Neal

Abstract

This paper constructs a cost of living index (COLI) that incorporates a network effect. While in this instance the application is to the telecommunications sector, the COLI are applicable more generally to network industries. The COLI permit valid welfare comparisons to be made by individual, region and country. Illustrative COLI estimates are provided for selected OECD member country telecommunications market data.

Suggested Citation

  • Gary Madden & Grant Coble-Neal, 2004. "A cost of living index incorporating a network effect," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2231-2235.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2231-2235
    DOI: 10.1080/0003684042000266982
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    1. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, vol. 84(3), pages 396-418, June.
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