Commensurability and Characterization of Normalization Conditions for Cost-of-Living Comparisons under Time-Varying CES Preferences

C-Tier
Journal: Economics Letters
Year: 2024
Volume: 244
Issue: C

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that the normalization conditions for a CES utility function with time-varying preferences (Redding and Weinstein, 2020) must be of weighted-geometric mean form to ensure commensurability of price indexes, and numerically illustrate failure of additive normalization to satisfy commensurability.

Technical Details

RePEc Handle
repec:eee:ecolet:v:244:y:2024:i:c:s0165176524005020
Journal Field
General
Author Count
2
Added to Database
2026-01-29