IDEAS home Printed from https://ideas.repec.org/a/ecm/emetrp/v58y1990i1p75-92.html
   My bibliography  Save this article

On Calculating Cost-of-Living Index Numbers for Arbitrary Income Levels

Author

Listed:
  • Balk, Bert M

Abstract

A method for computing (approximate) cost-of-living index numbers for arbitrary reference income levels is presented. It combines the use of fairly disaggregated data with a relatively modest use of econometric methods. The basis ingredients are (1) a series of chained Tornqvist price index numbers relating to per capital total expenditure, (2) price index numbers for the commodities distinguished, and (3) the income parameters of a differential demand system. This method attains second order precision and is equivalent to a full econometric method based on a translog utility function. The method is demonstrated on Netherlands data for 1952-81. Copyright 1990 by The Econometric Society.

Suggested Citation

  • Balk, Bert M, 1990. "On Calculating Cost-of-Living Index Numbers for Arbitrary Income Levels," Econometrica, Econometric Society, vol. 58(1), pages 75-92, January.
    • Handle: RePEc:ecm:emetrp:v:58:y:1990:i:1:p:75-92
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0012-9682%28199001%2958%3A1%3C75%3AOCCINF%3E2.0.CO%3B2-M&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Garcimartín & Jhonatan Astudillo & André Martínez, 2021. "Inflation and income distribution in Central America, Mexico, Panama, and the Dominican Republic," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 315-339, February.
    2. Hoffmann, Johannes, 1998. "Probleme der Inflationsmessung in Deutschland," Discussion Paper Series 1: Economic Studies 1998,01, Deutsche Bundesbank.
    3. Baye, Michael R. & Black, Dan A., 1991. "A differential measure of the real wage index," Economics Letters, Elsevier, vol. 36(3), pages 295-298.
    4. Kiruta Alexander & Sheviakov Alexey, 1999. "Economic Inequality, Standards of Living, and Poverty in Russia: Measurement and Causal Dependencies," EERC Working Paper Series 97-290e, EERC Research Network, Russia and CIS.
    5. Michael Baye & Robert Maness & Steven Wiggins, 1997. "Demand systems and the true subindex of the cost of living for pharmaceuticals," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1179-1190.
    6. Marshall Reinsdorf & Jack E. Triplett, 2009. "A Review of Reviews: Ninety Years of Professional Thinking About the Consumer Price Index," NBER Chapters, in: Price Index Concepts and Measurement, pages 17-83, National Bureau of Economic Research, Inc.
    7. Hill, Robert J., 2006. "Superlative index numbers: not all of them are super," Journal of Econometrics, Elsevier, vol. 130(1), pages 25-43, January.
    8. Aliakbar KHOSRAVINEJAD, 2008. "Welfare Effects of Food Desubsidization For Iranian Urban Households (The Index Number and Demand System Approach)," EcoMod2008 23800063, EcoMod.
    9. Shireen AlAzzawi, 2017. "Did the Cost of Living Rise Faster for the Rural Poor?," Working Papers 1091, Economic Research Forum, revised 05 Apr 2017.
    10. W. Erwin Diewert, 1995. "Price and Volume Measures in the System of National Accounts," NBER Working Papers 5103, National Bureau of Economic Research, Inc.
    11. W. Erwin Diewert, 1995. "Axiomatic and Economic Approaches to Elementary Price Indexes," NBER Working Papers 5104, National Bureau of Economic Research, Inc.

    More about this item

    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:ecm:emetrp:v:58:y:1990:i:1:p:75-92. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.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.