search query: @author Chambers, R. G. / total: 3
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| Author: | Pope, R. D. Chambers, R. G. |
| Title: | Price aggregation when price- taking firms' prices vary. |
| Journal: | Review of Economic Studies
1989 : APR, VOL. 56:186, p. 297-309 |
| Index terms: | PRICES FIRM (THEORY OF) |
| Language: | eng |
| Abstract: | In many cases, heterogenous prices occur in price-taking environments. In empirical work, an aggregate price index is often created from such prices and used to explain aggregate supply and derived demands. It is shown that consistent aggregation places strong restrictions on functional forms which may be used to describe behaviour. Unlike the case of aggregation of consumer income - but similar to the case of aggregation of wages - these functional forms are inconsistent with standard microtheory. It is concluded that a fruitful area of future research is the consideration of two or more indices of price. |
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