Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-28T22:01:31.418Z Has data issue: false hasContentIssue false
  • English
  • Français

INTRODUCTION TO MEASUREMENT WITH THEORY

Published online by Cambridge University Press:  15 September 2009

William A. Barnett ,
W. Erwin Diewert  and
Arnold Zellner
William A. Barnett*
Affiliation:
University of Kansas
W. Erwin Diewert
Affiliation:
University of British Columbia
Arnold Zellner
Affiliation:
University of Chicago
*
Address correspondence to: William A. Barnett, Department of Economics, University of Kansas, Snow Hall, 1460 Jayhawks Blvd., Lawrence, KS 66045-7585, USA; e-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper is the introduction to the Macroeconomic Dynamics Special Issue on Measurement with Theory. The Guest Editors of the special issue are William A. Barnett, W. Erwin Diewert, Shigeru Iwata, and Arnold Zellner. The papers included are part of a larger initiative to promote measurement with theory in economics.

Keywords

MeasurementIndex Number TheoryAggregation Theory
Type
Introduction
Information
Macroeconomic Dynamics , Volume 13 , Supplement S2: Measurement with Theory , September 2009 , pp. 151 - 168
Copyright
Copyright © Cambridge University Press 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Afriat, S.N. (1967) The construction of utility functions from expenditure data. International Economic Review 8, 67–77.CrossRefGoogle Scholar
Allen, R.G.D. (1949) The economic theory of index numbers. Economica 16, 197–203.CrossRefGoogle Scholar
Balk, B.M. (1996) A comparison of ten methods for multilateral international price and volume comparisons. Journal of Official Statistics 12, 199–222.Google Scholar
Balk, B.M. (2003) The residual: On monitoring and benchmarking firms, industries and economies with respect to productivity. Journal of Productivity Analysis 20, 5–47.CrossRefGoogle Scholar
Balk, B.M. (2009a) Measuring productivity change without neoclassical assumptions: A conceptual analysis. In Diewert, W.E., Balk, B.M., Fixler, D., Fox, K.J., and Nakamura, A.O. (eds.), Price and Productivity Measurement: Volume 6—Index Number Theory, Ch. 4. Victoria, Canada: Trafford Press. In press.Google Scholar
Balk, B.M. (2009b) On the relation between gross output– and value added–based productivity measures: The importance of the Domar factor. Macroeconomic Dynamics 13, Supplement 2, 241–267.CrossRefGoogle Scholar
Banks, J., Blundell, R., and Lewbel, A. (1997) Quadratic Engel curves and consumer demand. Review of Economics and Statistics 79, 527–539.CrossRefGoogle Scholar
Barnett, W.A. and Choi, S. (1989) A Monte Carlo study of tests of blockwise weak separability. Journal of Business and Economic Statistics 7, 363–377.Google Scholar
Barnett, W.A. and Hahm, J.H. (1994) Financial firm production of monetary services: A generalized symmetric Barnett variable-profit function approach. Journal of Business and Economic Statistics 12, 33–46.Google Scholar
Barnett, W.A. and Peretti, P. de (2009) Admissible clustering of aggregator components: A necessary and sufficient stochastic seminonparametric test for weak separability. Macroeconomic Dynamics 13, Supplement 2, 317–334.CrossRefGoogle Scholar
Barnett, W.A. and Serletis, A. (1990) A dispersion dependency diagnostic test for aggregation error: With applications to monetary economics and income distribution. Journal of Econometrics 43, 5–43. Reprinted in W.A. Barnett and A. Serletis (eds.), The Theory of Monetary Aggregation, Chap. 9, pp. 5–34. Amsterdam: North-Holland, 2000.CrossRefGoogle Scholar
Barnett, W.A. and Serletis, A. (2008) Consumer preferences and demand systems. Journal of Econometrics 147, 210–224.CrossRefGoogle Scholar
Barnett, W.A. and Zhou, G. (1994) Financial firms' production and supply-side monetary aggregation under dynamic uncertainty. Federal Reserve Bank of St. Louis Review 76, 133–165.Google Scholar
Barnett, W.A., Chauvet, M., and Tierney, H.L.R. (2009) Measurement error in monetary aggregates: A Markov switching factor approach. Macroeconomic Dynamics 13, Supplement 2, 381–412.CrossRefGoogle Scholar
Barnett, W.A., Kirova, M., and Pasupathy, M. (1995) Estimating policy-invariant deep parameters in the financial sector when risk and growth matter. Journal of Money, Credit, and Banking 27, 1402–1430.CrossRefGoogle Scholar
Bennet, T.L. (1920) The theory of measurement of changes in cost of living. Journal of the Royal Statistics Society 83, 455–462.CrossRefGoogle Scholar
Bernard, A.B. and Jones, C.I. (1996) Comparing apples to oranges: Productivity convergence and measurement across industries and countries. American Economic Review 86 (5), 1216–1238.Google Scholar
Blackorby, C., Primont, D., and Russell, R.R. (1977) On testing separability restrictions with flexible functional forms. Journal of Econometrics 5, 195–209.CrossRefGoogle Scholar
Caves, D.W., Christensen, L.R., and Diewert, W.E. (1982) Multilateral comparisons of output, input and productivity using superlative index numbers. Economic Journal 92, 73–86.CrossRefGoogle Scholar
Deaton, A. and Heston, A. (2008) Understanding PPPs and PPP-Based National Accounts. NBER Working Paper 14499, National Bureau of Economic Research, Cambridge, MA.CrossRefGoogle Scholar
Deaton, A.S. and Muellbauer, J. (1980) An almost ideal demand system. American Economic Review 70, 312–326.Google Scholar
Denny, M., Fuss, M., and Waverman, L. (1981) The measurement and interpretation of Total Factor Productivity in regulated industries, with an application to Canadian telecommunications. In Cowing, T.G. and Stevenson, R.E. (eds.), Productivity Measurement in Regulated Industries, pp. 179–218. New York: Academic Press.Google Scholar
Diewert, W.E. (1973) Afriat and revealed preference theory. Review of Economic Studies 40, 419–425.CrossRefGoogle Scholar
Diewert, W.E. (1976) Exact and superlative index numbers. Journal of Econometrics 4, 114–145.CrossRefGoogle Scholar
Diewert, W.E. (1988) Test approaches to international comparisons. In Eichhorn, W. (ed.), Measurement in Economics: Theory and Applications of Economic Indices, pp. 67–86. Heidelberg: Physica-Verlag.CrossRefGoogle Scholar
Diewert, W.E. (1992a) Exact and superlative welfare change indicators. Economic Inquiry 30, 565–582.CrossRefGoogle Scholar
Diewert, W.E. (1992b) The measurement of productivity. Bulletin of Economic Research 44 (3), 163–198.CrossRefGoogle Scholar
Diewert, W.E. (1999) Axiomatic and economic approaches to international comparisons. In Heston, A. and Lipsey, R.E. (eds.), International and Interarea Comparisons of Income, Output and Prices, Studies in Income and Wealth, vol. 61, pp. 13–87. Chicago: University of Chicago Press.Google Scholar
Diewert, W.E. (2005) Index number theory using differences instead of ratios. American Journal of Economics and Sociology 64 (1), 311–360.CrossRefGoogle Scholar
Diewert, W.E. (2008) New Methodological Developments for the International Comparison Program. Discussion Paper 08-08, Department of Economics, University of British Columbia, Vancouver, Canada.Google Scholar
Diewert, W.E. (2009) Similarity indexes and criteria for spatial linking. In Rao, D.S. Prasada (ed.), Purchasing Power Parities of Currencies: Recent Advances in Methods and Applications, Chap. 8, pp. 155–176. Cheltenham, UK: Edward Elgar.Google Scholar
Diewert, W.E. and Mizobuchi, H. (2009) Exact and superlative price and quantity indicators. Macroeconomic Dynamics 13, Supplement 2, 335–380.CrossRefGoogle Scholar
Diewert, W.E. and Morrison, C.J. (1986) Adjusting output and productivity indexes for changes in the terms of trade. Economic Journal 96, 659–679.CrossRefGoogle Scholar
Diewert, W.E. and Nakamura, A.O. (2003) Index number concepts, measures and decompositions of productivity growth. Journal of Productivity Analysis 19, 127–159.CrossRefGoogle Scholar
Diewert, W.E. and Wales, T.J. (1987) Flexible functional forms and global curvature conditions. Econometrica 55, 43–68.CrossRefGoogle Scholar
Diewert, W.E. and Wales, T.J. (1995) Flexible functional forms and tests of homogeneous separability. Journal of Econometrics 67, 259–302.CrossRefGoogle Scholar
Domar, E.D. (1961) On the measurement of technological change. The Economic Journal 71, 709–721.CrossRefGoogle Scholar
Feenstra, R.C., Ma, H., and Rao, D.S. Prasada (2009) Consistent comparisons of real incomes across time and space. Macroeconomic Dynamics 13, Supplement 2, 169–193.CrossRefGoogle Scholar
Fisher, I. (1922) The Making of Index Numbers. Boston: Houghton-Mifflin.Google Scholar
Geary, R.G. (1958) A note on comparisons of exchange rates and purchasing power between countries. Journal of the Royal Statistical Society Series A 121, 97–99.CrossRefGoogle Scholar
Gini, C. (1931) On the circular test of index numbers. Metron 9 (9), 3–24.Google Scholar
Harberger, A.C. (1971) Three basic postulates for applied welfare economics: An interpretive essay. Journal of Economic Literature 9, 785–797.Google Scholar
Harrison, G.C. (1918) Cost accounting to aid production, I. Industrial Management 56, 273–282.Google Scholar
Hicks, J.R. (1941–1942) Consumers' surplus and index numbers. Review of Economic Studies 9, 126–137.CrossRefGoogle Scholar
Hicks, J.R. (1945–1946) The generalized theory of consumers' surplus. Review of Economic Studies 13, 68–74.CrossRefGoogle Scholar
Hill, R.J. (1997) A taxonomy of multilateral methods for making international comparisons of prices and quantities. Review of Income and Wealth 43 (1), 49–69.CrossRefGoogle Scholar
Hill, R.J. (1999) Comparing price levels across countries using minimum spanning trees. Review of Economics and Statistics 81, 135–142.CrossRefGoogle Scholar
Hill, R.J. (2001) Measuring inflation and growth using spanning trees. International Economic Review 42, 167–185.CrossRefGoogle Scholar
Hill, R.J. (2004) Constructing price indexes across space and time: The case of the European Union. American Economic Review 94, 1379–1410.CrossRefGoogle Scholar
Hill, R.J. and Hill, T.P. (2009) Recent developments in the international comparison of prices and real output. Macroeconomic Dynamics 13, Supplement 2, 194–217.CrossRefGoogle Scholar
Hill, T.P. (2007) ICP 2003–2006 Handbook, Chaps. 11–15. Washington DC: World Bank. Available at http://siteresources.worldbank.org/ICPINT/Resources/Ch11.doc. Accessed 17 June 2009.Google Scholar
Hotelling, H. (1938) The general welfare in relation to problems of taxation and of railway and utility rates. Econometrica 6, 242–269.CrossRefGoogle Scholar
Inklaar, R. and Timmer, M.P. (2009) Productivity convergence across industries and countries: The importance of theory-based measurement. Macroeconomic Dynamics 13, Supplement 2, 218–240.CrossRefGoogle Scholar
Jorgenson, D.W. and Griliches, Z. (1967) The explanation of productivity change. Review of Economic Studies 34, 249–283.CrossRefGoogle Scholar
Khamis, S.H. (1972) A new system of index numbers for national and international purposes. Journal of the Royal Statistical Society Series A 135, 96–121.CrossRefGoogle Scholar
Kohli, U. (1990) Growth accounting in the open economy: Parametric and nonparametric estimates. Journal of Economic and Social Measurement 16, 125–136.CrossRefGoogle Scholar
Konüs, A.A. (1939) The problem of the true index of the cost of living. Econometrica 7, 10–29.CrossRefGoogle Scholar
Marshall, A. (1890) Principles of Economics. London: Macmillan Co.Google Scholar
Montgomery, J.K. (1937) The Mathematical Problem of the Price Index. Orchard House, Westminster, UK: P.S. King & Son.Google Scholar
Neary, J.P. (2004) Rationalizing the Penn World Tables: True multilateral indices for international comparisons of real income. American Economic Review 94, 1411–1428.CrossRefGoogle Scholar
Samuelson, P.A. (1974) Complementarity—An essay on the 40th anniversary of the Hicks–Allen revolution in demand theory. Journal of Economic Literature 12, 1255–1289.Google Scholar
Solow, R.M. (1957) Technical change and the aggregate production function. Review of Economics and Statistics 39, 312–320.CrossRefGoogle Scholar
Townsend, R.M. and Urzua, S.S. (2009) Measuring the impact of financial intermediation: Linking contract theory to econometric policy evaluation. Macroeconomic Dynamics 13, Supplement 2, 268–316.CrossRefGoogle ScholarPubMed
Varian, H. (1982) The nonparametric approach to demand analysis. Econometrica 50, 945–973.CrossRefGoogle Scholar
Varian, H. (1983) Non-parametric tests of consumer behavior. Review of Economic Studies 50, 99–110.CrossRefGoogle Scholar
Weitzman, M.L. (1988) Consumer's surplus as an exact approximation when prices are appropriately deflated. Quarterly Journal of Economics 102, 543–553.CrossRefGoogle Scholar
World Bank (2008) 2005 International Comparison Program: Tables of Final Results, Preliminary draft. Washington, DC: World Bank. Available at http://siteresources.worldbank.org/ICPINT/Resources/ICP_final-results.pdf. Accessed 17 June 2009.Google Scholar