1st Edition

The Price Index and its Extension A Chapter in Economic Measurement

By Sydney N. Afriat Copyright 2005
    456 Pages
    by Routledge

    456 Pages
    by Routledge

    The book is not an unrestricted survey engaging a vast and repetative literature, but a systematic treatise within clear boundaries, largely a document of Afriat's own work. The original motive of the work is to elaborate a concept of what really is a price index, which, despite some kind of price-level notion having a presence throughout economics, in theory and practice, had been missing.

    Part I: Paasche, Laspeyres and FisherIntroduction - Theory and Practice1. Comparisons2. Fleetwood's student3. What is a price index? I - Three Problems 1. The 'Index Number Problem'2. Formulae and tests3. Utility-cost4. Cost efficiency and effectiveness5. The price index6. Problems II - The General Probem of Limits 1. Consistency of demands2. Revealed choice and preference3. Preference-nonpreference contradiction4. Cost-efficiency and nonsatiation5. Critical costs6. Revealed bounds and classical limits III - The Homogeneous Problem - Laspeyres and Paasche 1. Conical utility and expansion loci2. Homogeneous consistency3. Revealed homogeneous preference4. Range of the price index5. Revealed bounds6. Classical limits IV - Fisher and quadratics 1. Byushgens on Fisher2. Question about Byushgens3. Gradients and quadratics4. Conditions for compatibility5. Theorem on quadratic consistencyPart II - The Cost of Living I - Price and quantity levels 1. Price-quantity duality2. Dual function examples3. Price and quantity levels4. Limits of Indeterminacy II - The True Index 1. The cost of living2. The price index3. Formulae, and Fisher's Tests4. The Paasche-Laspeyres interval5. Existence test6. Theory and practice7. Many periods8. Price levels9. Fisher's formula III - Fisher and Byushgens 1. Byushgens' theorem2. The existence question3. Purchasing power correspondence4. Many-period generalization IV - The Four Point Formula 1. Median multipliers and levels2. Centre locus3. Linear purchasing power4. Critical locations5. Elliptical case V - Wald's New Formula 1. Linear expansions2. Revealed purchasing power3. The critical points4. Marginal price indices, and limits

    Biography

    S. N. Afriat currently associated with the University of Siena, Italy, has a long and distinguished record of publishing at the interface of mathematics and economics. His most recent book The Market: Equilibrium, Stability, Mythology is also published by Routledge (2003).