Commensurability and Characterization of Normalization Conditions for Cost-of-Living Comparisons under Time-Varying CES Preferences

IF 2.1 4区经济学 Q2 ECONOMICS

Economics Letters Pub Date : 2024-10-09 DOI:10.1016/j.econlet.2024.112018

Naohito Abe , D.S. Prasada Rao

引用次数: 0

Abstract

We show that the normalization conditions for a CES utility function with time-varying preferences (Redding and Weinstein, 2020) must be of weighted-geometric mean form to ensure commensurability of price indexes, and numerically illustrate failure of additive normalization to satisfy commensurability.

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时变 CES 偏好下生活费用比较的可比性和归一化条件的特征

我们表明，具有时变偏好的 CES 效用函数（Redding 和 Weinstein，2020 年）的归一化条件必须是加权几何平均形式，才能确保价格指数的可比性，并用数字说明了加法归一化无法满足可比性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economics Letters ECONOMICS-

CiteScore

3.20

自引率

5.00%

发文量

348

审稿时长

30 days

期刊介绍： Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Economics Letters has been conceived and designed outside the realm of the traditional economics journal. As a Letters Journal, it consists of concise communications (letters) that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.