The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jan, 1977, Volume 45, Issue 1
https://www.jstor.org/stable/1913293
p. 163-172
N. Anders Klevmarken
Based on Lancaster's model of consumer behavior, Konus' cost of living index is generalized to incorporate quality changes and new commodities. Since it is demonstrated that Laspeyres' index is an upper bound on the true index only with restrictive assumptions about the utility function, another index which is always an upper bound is also suggested.
December 4, 2024
