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Purchasing power parities and consumer theory

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  • Adam Szulc

Abstract

Purchasing power parities are calculated using the index number defined as a ratio of cost functions in two price situations. The definition does not require similarity of preference across countries. Necessary parameters are estimated using translogarithmic Hicksian budget shares. The results may be useful in comparisons of consumption because of the relevance to the consumer theory.

Suggested Citation

  • Adam Szulc, 1996. "Purchasing power parities and consumer theory," Applied Economics Letters, Taylor & Francis Journals, vol. 3(1), pages 5-7.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:1:p:5-7
    DOI: 10.1080/758525506
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    Cited by:

    1. Adam Szulc, 1996. "Economic Transition and Poverty: The Case of the Vysehrad Group Countries," LIS Working papers 138, LIS Cross-National Data Center in Luxembourg.

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