We argue that the workings of world metal markets can be characterised by three facts: Fact One: Global determinants of prices do not dominate market-specific ones. Fact Two (in its simplest form): The relative price of a metal is inversely proportional to its relative volume of production. If,...

Food occupies a role of particular importance in the consumer’s budget, especially in poor countries. This paper deals with special issues arising from modelling food consumption patterns in 138 countries, where per capita incomes differ by as much as a factor of 100. We explore various forms...

One measure of the change in the “quality” of consumption is the degree to which the consumption basket as a whole moves towards more luxurious goods, away from necessities. We introduce two related measures based on the luxury/necessity distinction. One is an index of the extent to which...

The dispersion of the distribution of relative prices in poor countries is substantially higher than that in the rich. As in 130+ countries relative prices are closely related to incomes, we develop a model that shows that the prices of luxuries (necessities) rise (fall) with income growth. This...

At any given instance there are many indicators of the state of the economy or the state of a sector and frequently the signals are mixed – some may point to an expansion, others to a contraction, for example. We consider how best to combine this conflicting information into an overall index...

Half a century ago, Barten (1964) and Theil (1965) formulated what is now known as the Rotterdam model. A path-breaking innovation, this system of demand equations allowed for the first time rigorous testing of the theory of the utility-maximising consumer. This has led to a vibrant, on-going...