We introduce an approach for the empirical study of the quantity theory of money (QTM) that is novel both with respect to the specific steps taken as well as the general methodology employed. Empirical studies of the QTM have focused directly on the relationship between the rate of change of the...

The paper provides a rigorous derivation of the "welfare triangle approximation" (WTA), which is at the center of cost benefit analysis. The result is generalized by showing that the WTA is one of two dual expressions, one of which approximates the change in real consumption, the other the...

The international movement to convert the real (deflated) components of the NIPAs to chain indexes, in order to assure timeliness, has introduced grave inconsistencies. Most importantly, the components no longer add up to the totals. The U.S. accounts which employ a Fisher chain have additional...

We test the quantity theory of money (QTM) using a novel approach and a large new sample. We do not follow the usual approach of first differentiating the logarithm of the Cambridge equation to obtain an equation relating the growth rate of real GDP, the growth rate of money and inflation. These...

The international movement to convert the real (deflated) components of the NIPAs to chain indexes, in order to assure timeliness, has introduced grave inconsistencies. Most importantly, the components no longer add up to the totals. The U.S. accounts which employ a Fisher chain have additional...

The paper provides a rigorous derivation of the "welfare triangle approximation" (WTA), which is at the center of cost benefit analysis. The result is generalized by showing that the WTA is one of two dual expressions, one of which approximates the change in real consumption, the other the...