This paper is divided into two parts which deal with closely connected issues, The first section of the paper explores the structure of consumer demand systems necessary and sufficient for exact aggregation. The second section addresses a related empirical question: what, if anything, do the...

Ordinary consumer price indices customarily overstate increases in the cost of living because they do not allow for consumer substitution as relative prices change. This study looks for a more accurate measure of variations in the cost of living in Argentina over the years 1960 to 1995, taking...

This paper reviews the theory of the true cost of living index and its approximation through superlative index numbers, as well as the Vartia quantum theory of bias in index numbers as applied to substitution bias in consumer price indices. Estimated adjustments are proposed for the Argentine...

Policy analysis frequently requires estimates of aggregate (or mean) consumer elasticities. However, estimates are often made incorrectly, based on elasticity calculations at mean income. We provide in this paper an overall integrated analytical framework that encompasses these biases and...

The Boskin report (1996) concluded that the US consumer price index (CPI) overestimated the inflation by 1.1 percentage points. This was due to several measurement errors in the CPI. One of them is called quality change bias. We compare two methods in this paper which can be used to correct for...

We establish the Hurwicz-Uzawa integrability of the broad class of discrete-choice additive random-utility models of individual consumer behavior with perfect substitutes preferences and divisible goods. We derive the corresponding indirect uility function and then establish a representative...

This paper evaluates the economic consequences of quality change and new service introductions in the cable television industry over the period 1989-1995. To address these issues, we develop and estimate a discrete-choice, differentiated product model of the demand for and the pricing of the...

This paper provides a comparative analysis of statistical methods to evaluate the consumer perception about the quality of Services of General Interest. The evaluation of the service quality perceived by users is usually based on Customer Satisfaction Survey data and an ex-post evaluation is...

A puzzling development over the past 15 years is decline in Total Factor Productivity in many advanced economies. Part of this decline may be due to the rapid growth of free digital goods. Statistical agencies have no reliable way to measure the benefits of the introduction of free goods. This...

In the urban economics, the distribution of people and real estate prices depends on the location of the central business district. As distance from the city center increases, both prices and population density diminish, for travel costs increase in terms of time and money. As manufacturing...