This paper examines two different measures of wages as predicators of prices in a vector errorcorrection framework using quarterly data for the U.S. for the period from 1947.Q1 through 2008.Q1. Based on cointegration and a series of exogeneity tests, it is found that: 1) there is a stable, long-run relationship between the Consumer Price Index (CPI) and the Personal Consumption Expenditure Defl...

This paper proposes a partial equilibrium model to describe the global crude oil market. Pricing on the global crude oil market is strongly influenced by price indices such as WTI (USA) and Brent (Northwest Europe). Adapting an approach for pool-based electricity markets, the model captures the particularities of these benchmark price indices and their influence on the market of physical oil. T...

This paper is a good example of how solid research can support the policy decision process. Based on housing and land transaction data, the authors use the hedonic approach to calculate constant quality housing price and land price indices in 35 Chinese cities. This new and unique dataset on residential land transactions at the city level is by itself an important contribution, and the statisti...

How can we take account of these products that spring up or are modified – a phenomenon we shall refer to by the generic term “quality factor”? One option is to resort to econometric methods. Such methods have been used at INSEE to calculate selling price indices for microcomputers and printers indices that have been published quarterly since autumn 1991 for microcomputers (going back to 1988) ...

We evaluate the impact of three auction mechanisms—the Becker-DeGroot-Marschak (BDM) mechanism, the second-price auction (SPA), and the random nth-price auction (NPA)—in the measurement of private willingness-to-pay and willingness-to-accept for a pure public good. Our results show that the endowment effect is lower with the BDM mechanism. In this market mechanism, the effect disappears after a...

The price of anarchy (PoA) has been widely used in static games to quantify the loss of efficiency due to noncooperation. Here, we extend this concept to a general differential games framework. In addition, we introduce the price of information (PoI) to characterize comparative game performances under different information structures, as well as the price of cooperation to capture the extent of...

Major research on equity index dynamics has investigated only US indices (usually the S&P 500) and has provided contradictory results. In this paper a clarification and extension of that previous research is given. We find that European equity indices have quite different dynamics from the S&P 500. Each of the European indices considered may be satisfactorily modelled using either an affine mod...

17.1 This chapter and the next cover the economic approach to index number theory. This chapter considers the case of a single household, while the following chapter deals with the case of many households. A brief outline of the contents of the present chapter follows. 17.2 In paragraphs 17.9 to 17.17, the theory of the cost of living index for a single consumer or household is presented. This ...