The ambiguous effect of new and improved goods on the cost of living

Authors
Erickson, T
Citation
T. Erickson, The ambiguous effect of new and improved goods on the cost of living, ECON LETT, 68(2), 2000, pp. 143-147
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
68
Issue
2
Year of publication
2000
Pages
143 - 147
Database
ISI
SICI code
0165-1765(200008)68:2<143:TAEONA>2.0.ZU;2-#
Abstract
I show that the income-share-weighted average of individual cost-of-living indexes can diverge sharply from the equally-weighted 'ordinary' average wh en quality improvements are embodied in discrete goods. It is possible for the income-share-weighted mean to decline while the ordinary mean rises. (C ) 2000 Published by Elsevier Science S.A. JEL classification: C43.