EconPapers    
Economics at your fingertips  
 

Promises, Promises: The States' Experience With Income Tax Indexing

Daniel Feenberg () and Harvey Rosen ()

No 2712, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The paper discusses five early approaches to the price (and quantity) index number problem. The five approaches are: (1) the fixed basket approach; (ii) the statistical approach; (iii) the test or axiomatic approach; (iv) the Divisia approach and (v) the economic approach. The economic approach makes use of the assumption of optimizing behavior under constraint and the approach is discussed under four subtopics: (i) basic theoretical definitions; (ii) the theory of bounds; (iii) exact index numbers and (iv) econometric estimation of preferences. The paper also discusses several topics raised by Jack Triplett in a recent paper, including: (i) the merits of the test approach to index number theory, (ii) the chain principle and alternatives to it; (iii) the substitution bias and (iv) the new good bias. Although the paper is for the most part an extensive historical survey, there are a few new results in section 8 on multilateral alternatives to the chain principle. Also in section 6.3, it is shown that the Paasche, Laspeyres and all superlative indexes will satisfy the circularity test to the first order.

Date: 1988-09
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published as National Tax Journal, Vol. XLI, No. 4, pp. 525-542, (December 1988).

Downloads: (external link)
http://www.nber.org/papers/w2712.pdf (application/pdf)

Related works:
Journal Article: Promises, Promises: The States' Experience With Income Tax Indexing (1988) Downloads
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:2712

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w2712

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-17
Handle: RePEc:nbr:nberwo:2712