ScholarLens Back to search
2005•RePEc: Research Papers in EconomicsOpen access

The elasticity of substitution of superlative price indices

Petter Frenger

Open full text 28 citations

Abstract

Abstract:\nThe paper presents a method for computing the curvature implicit in the use of superlative price\nindices. It extends the quadratic lemma and allows us to compute the elasticity of substitution of the\nunderlying preferences in the direction of the observed price change for the Törnqvist and the\nquadratic mean of order r indices. It derives the expressions for the directional shadow elasticity of\nsubstitution and applies the results to the Norwegian CPI data base.\nKeywords: elasticity of substitution, superlative index, consumer price index (CPI).

Open-access reader

About this research paper

What this paper is about

Abstract:\nThe paper presents a method for computing the curvature implicit in the use of superlative price\nindices. It extends the quadratic lemma and allows us to compute the elasticity of substitution of the\nunderlying preferences in the direction of the observed price change for the Törnqvist and the\nquadratic mean of order r indices. It derives the expressions for the directional shadow elasticity of\nsubstitution and applies the results to the Norwegian CPI data base.\nKeywords: elasticity of substitution, superlative index, consumer price index (CPI).

Why it matters

OpenAlex reports 28 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Abstract:\nThe paper presents a method for computing the curvature implicit in the use of superlative price\nindices. It extends the quadratic lemma and allows us to compute the elasticity of substitution of the\nunderlying preferences in the direction of the observed price change for the Törnqvist and the\nquadratic mean of order r indices. It derives the expressions for the directional shadow elasticity of\nsubstitution and applies the results to the Norwegian CPI data base.\nKeywords: elasticity of substitution, superlative index, consumer price index (CPI).

Key concepts: Superlative, Elasticity (physics), Substitution (logic), Quadratic equation, Elasticity of substitution, Curvature, Mathematics, Econometrics

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The elasticity of substitution of superlative price indices — Research Paper | ScholarLens