Aaberge, Rolf; Langørgen, Audun; Mogstad, Magne; … - 2008
discussed below. The direct method is to use a purchasing power index; the alternative, indirect
method treats municipalities … costs it assigns index values that may be in error for reasons ranging from
substitution bias in the price indices to … the average price levels
to 1 ( 8,...,2,1i,1
0i
==π ), which means that unit cost
i
π is defined as a price index with …