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Measurement of inflation: An alternative approach
Get PDFThe stochastic approach to index numbers has attracted renewed attention in recent times (e.g., Clements and Izan, 1981 and 1987; Diewert, 1995; Giles and McCann, 1994; and Selvanathan and Rao, 1994). One of the attractions of this approach is that it provides standard errors for the index numbers. This paper reviews the stochastic approach and extends the existing work by presenting an alternative approach to measure the rate of inflation. This approach has been demonstrated using consumption expenditure data for three countries, Australia, the United Kingdom (UK) and the United States (US).stochastic approach, index numbers, inflation, standard errors
How similar are alcohol drinkers? International evidence
No full textStigler and Becker (1977) argue that tastes neither change capriciously nor differ importantly between people; it is differences in prices and incomes that determine differences in behaviour. In this paper we analyse the alcohol consumption patterns of drinkers from 8 industrialized countries. We identify a number of empirical regularities and verify Stigler and Becker's hypothesis that income and price elasticities of demand are international constants by showing that alcohol consumption patterns in the eight countries exhibit intriguing similarities. The income and price elasticities of alcohol are found to be about 0.8 and -0.6, respectively, in all eight countries.
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