The Economic Theory of Price Indices

The Economic Theory of Price Indices

Two Essays on the Effects of Taste, Quality, and Technological Change

1st Edition - January 28, 1972

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  • Authors: Franklin M. Fisher, Karl Shell
  • eBook ISBN: 9781483271156

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Description

The Economic Theory of Price Indices: Two Essays on the Effects of Taste, Quality, and Technological Change is concerned with the effects of consumer taste, product quality, and technological change on price indices. Special attention is paid on technological change in the simple two-sector production model of Rybczynski and Uzawa. The effects of the general case of changing factor supplies and factor-augmenting change on the real national output deflator are also examined. Comprised of two essays, this book begins with an analysis of the pure theory of the true cost-of-living index, which may be considered as an idealization of indices like the consumer price index and others of that type. The essay explores how the true cost-of-living index is affected by changes in consumer taste, quality changes in purchased goods, and the introduction of new goods into the market place. The second essay deals with the pure theory of the national output deflator and provides a foundation for the measurement of real national output (or product). It shows that the usual inequalities relating Paasche and Laspeyres to the true index are reversed (from what they are in cost-of-living theory) for the case of production. It also assesses the implications of changing production possibilities caused by technological change or a change in factor supplies. This monograph will be a useful resource for mathematicians, economists, and others interested in economic theory and mathematical economics.

Table of Contents


  • Preface

    Acknowledgments

    Essay I Taste and Quality Change in the Pure Theory of the True Cost-of-Living Index

    I. Introduction

    II. The Theory of the True Cost-of-Living Index and Intertemporal Comparison of Welfare

    III. Taste Change

    IV. New Goods and Other Corner Solutions

    V. Quality Change

    Footnotes for Essay I

    References for Essay I

    Essay II The Pure Theory of the National Output Deflator

    I. Introduction

    II. Real Output Indices and Production Possibility Maps

    III. Which Index Is Relevant?

    IV. Paasche and Laspeyres Indices

    V. Market Imperfections and Underutilized Resources

    VI. The Indices: Formal Description

    VII. Hicks-Neutral Technological Change

    VIII. Changing Factor Supplies and Factor-Augmenting Technological Change: The Two-Sector Model

    IX. Changing Factor Supplies and Factor-Augmenting Technological Change: The General Case

    X. Factor-Augmenting Technological Change in a Single Sector of the Two-Sector Model

    XI. General Technological Change

    XII. New Goods, Disappearing Goods, and Corner Solutions

    XIII. Quality Changes

    Footnotes for Essay II

    References for Essay II

    Index

Product details

  • No. of pages: 134
  • Language: English
  • Copyright: © Academic Press 1972
  • Published: January 28, 1972
  • Imprint: Academic Press
  • eBook ISBN: 9781483271156

About the Authors

Franklin M. Fisher

Karl Shell

Affiliations and Expertise

Cornell University

About the Editor

Karl Shell

Affiliations and Expertise

Cornell University

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