Date and Time: November 16th, 2016, 10:00 - 11:30 am
Room: A 101 in the Economics Building (Museum)
We construct aggregates based on four superlative index numbers, the Fisher, Sato-Vartia, Törnqvist and Walsh and the atheoretical simple sum for previously identified weakly separable blockings of goods. We examine how well these aggregates “fit” the data.
That is, we investigate how close these aggregates come to solving revealed preference inequalities, when it is known from the disaggregated data that a solution exists. We find that, as the number of goods aggregated increases, the superiority of the superlative indexes manifests. We find in our data that the four superlative indexes always get the direction of change right, while the simple sum aggregate sometime has the direction of change wrong.
About the Speaker
Prof. James Swofford is Professor at the South Alabama University in Mobile. His research areas are Macroeconomics, Monetary Economics and Applied Econometrics. He published many papers in internationally well-known papers such as Economica and Journal of Money, Credit and Banking, etc.