The Differential Approach to Superlative Index Number Theory

William Barnett (), Ke- Hong Choi and Tara M. Sinclair
Additional contact information
Ke- Hong Choi: National Pension Research Center in Seoul, Korea

Econometrics from EconWPA

Abstract: Diewert's "superlative" index numbers, defined to be exact for second order aggregator functions, unify index number theory with aggregation theory, but have been difficult to identify. We present a new approach to finding elements of this class. This new approach, related to that advocated by Henri Theil (1973), transforms candidate index numbers into growth rate form and explores convergence rates to the Divisia index. Since the Divisia index in continuous time is exact for any aggregator function, any discrete time index number that converges to the Divisia index and that has a third order remainder term is superlative.

Keywords: Theil; Diewert; superlative; index; numbers; Divisia; differential; approach (search for similar items in EconPapers)
JEL-codes: C8 (search for similar items in EconPapers)
Date: 2001-11-07, Revised 2001-12-28
Note: Type of Document - Word; prepared on IBM PC; to print on HP;
View list of references

Downloads: (external link)
http://129.3.20.41/eps/em/papers/0111/0111002.ps.gz (application/postscript)
http://129.3.20.41/eps/em/papers/0111/0111002.pdf (application/pdf)
http://129.3.20.41/eps/em/papers/0111/0111002.doc.gz (application/msword)

Related works:
Journal Article: The Differential Approach to Superlative Index Number Theory (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpem:0111002

Access Statistics for this paper

More papers in Econometrics from EconWPA
Series data maintained by EconWPA ().