|
Second Thoughts on Wald's Cost-of-Living Index and Frisch's Double Expenditure Method
Bert M. Balk
Abstract
In this paper it is demonstrated that Wald's price index is the true cost-of-living index corresponding to a utility function of the form (x - @c)' A (x - @c). Within this framework Frisch's double expenditure method and a related proposal of Samuelson are discussed.
|
