A cost of living index incorporating a network effect

Gary Madden and Grant Coble-Neal

Applied Economics, 2004, vol. 36, issue 19, 2231-2235

Abstract: This paper constructs a cost of living index (COLI) that incorporates a network effect. While in this instance the application is to the telecommunications sector, the COLI are applicable more generally to network industries. The COLI permit valid welfare comparisons to be made by individual, region and country. Illustrative COLI estimates are provided for selected OECD member country telecommunications market data.

Date: 2004
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DOI: 10.1080/0003684042000266982

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