Economica, New Series
The Measurement and Interpretation of Real Consumption and Purchasing Power Parity for a Quantity-Constrained Economy: The Case of East and West Germany [статья]
Опубликовано на портале: 20-07-2004Irwin L. Collier Economica, New Series. 1989. Vol. 56. No. 221. P. 109-120.
When households are subject to quantity constraints, conventional measures of real consumption and purchasing power parity for cross-national comparisons suffer from a new type of index number problem. Additional information on preferences taken from a demand system estimated for a similar economy without quantity constraints can be employed to calculate distance function and money-metric indexes of relative real consumption and corresponding measures of purchasing power parity. The procedure is illustrated in a comparison of East and West German consumer prices and consumption expenditures for 1977.