haku: @indexterm COST OF LIVING / yhteensä: 30
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| Tekijä: | Reinsdorf, M. B. Dorfman, A. H. |
| Otsikko: | The Sato-Vartia index and the monotonicity axiom |
| Lehti: | Journal of Econometrics
1999 : MAY, VOL. 90:1, p. 45-61 |
| Asiasana: | Theories Cost of living |
| Vapaa asiasana: | Törnqvist index Monotonicity |
| Kieli: | eng |
| Tiivistelmä: | The Sato-Vartia index is believed to be on a par with the Fisher ideal index in terms of its ability to satisfy index number axioms or tests. Yet, in this paper, it is shown that this index fails to satisfy the monotonicity axiom. Provided are formulas for the point at which Sato-Vartia price index becomes non-monotonic in prices. In fact, requiring monotonicity for initial as well as final prices rules out not only the Sato-Vartia index but all log-change price indexes whose weights depend upon initial or final expenditure shares. Since cost of living index theory leads naturally to the Sato-Vartia index, as well as to other log-change indexes, there is an irreconcilable tension btw. the standard axiomatics for indexes, and cost of living index theory. |
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