introduction of new goods (or the disappearance of existing goods). In this paper I explain the theory of cost-of-living indices … and demonstrate how new goods should be included using the classical theory of Hicks and Rothbarth. The correct price to …

The paper presents a general theory of the aggregation of prices and quantities that unifies the field and relates … topics that in the past have been treated separately and unsatisfactorily, or not at all. The theory does without the common … the theory lead to Törnqvist indexes defined on the appropriate data set. A numerical example confirms that in the non …