Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210949
Authors: 
Hjertstrand, Per
Swofford, James L.
Whitney, Gerald A.
Year of Publication: 
2019
Series/Report no.: 
IFN Working Paper 1308
Abstract: 
For previously identified weakly separable blockings of goods and assets, we construct aggregates using four superlative index numbers, the Fisher, Sato-Vartia, Törnqvist and Walsh, two non-superlative indexes, the Laspeyres and Paasche and the atheoretical simple summation. We conduct several tests to examine how well each of these aggregates "fit" the data. These tests are how close the aggregates come to solving the revealed preference conditions for weak separability, how often each aggregate gets the direction of change correct and how well the aggregates mimic the preference ranking from revealed preference tests. We find that, as the number of goods and assets being aggregated increases, the problems with simple summation manifest.
Subjects: 
Superlative index numbers
Aggregation
Preference orderings
Weak separability
JEL: 
C43
Document Type: 
Working Paper

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