Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Nov, 1981, Volume 49, Issue 6

Second Thoughts on Wald's Cost-of-Living Index and Frisch's Double Expenditure Method

https://doi.org/0012-9682(198111)49:6<1553:STOWCI>2.0.CO;2-8
p. 1553-1558

Bert M. Balk

In this paper it is demonstrated that Wald's price index is the true cost-of-living index corresponding to a utility function of the form (x - @c)' A (x - @c). Within this framework Frisch's double expenditure method and a related proposal of Samuelson are discussed.


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