Barnett, William A. and Diewert, W. Erwin and Zellner, Arnold (2009): Introduction to Measurement with Theory.

PDF
MPRA_paper_14868.pdf Download (148kB)  Preview 
Abstract
This working paper is the first draft of an overview and commentary on the papers to appear in a Macroeconomic Dynamics Special Issue on Measurement with Theory. The included papers in the special issue are part of a larger initiative to promote "measurement with theory" in economics and planned to appear as special issues of other journals. A later revised draft of this initial commentary is planned to appear as the introduction to the Macroeconomic Dynamics special issue, expected to appear in 2010.
Item Type:  MPRA Paper 

Original Title:  Introduction to Measurement with Theory 
Language:  English 
Keywords:  Measurement; index number theory; aggregation theory. 
Subjects:  C  Mathematical and Quantitative Methods > C3  Multiple or Simultaneous Equation Models; Multiple Variables > C32  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models C  Mathematical and Quantitative Methods > C4  Econometric and Statistical Methods: Special Topics > C43  Index Numbers and Aggregation C  Mathematical and Quantitative Methods > C8  Data Collection and Data Estimation Methodology; Computer Programs > C82  Methodology for Collecting, Estimating, and Organizing Macroeconomic Data C  Mathematical and Quantitative Methods > C8  Data Collection and Data Estimation Methodology; Computer Programs > C81  Methodology for Collecting, Estimating, and Organizing Microeconomic Data 
Item ID:  14868 
Depositing User:  William A. Barnett 
Date Deposited:  28. Apr 2009 05:03 
Last Modified:  12. Feb 2013 15:29 
References:  Afriat, S.N. (1967), The construction of utility functions from expenditure data. International Economic Review 8, 6777. Allen, R.G.D. (1949), The economic theory of index numbers. Economica 16, 197203. Balk, B.M. (1996), A comparison of ten methods for multilateral international price and volume comparisons. Journal of Official Statistics 12, 199222. Balk, B.M. (2003), The residual: on monitoring and benchmarking firms, industries and economies with respect to productivity. Journal of Productivity Analysis 20, 547. Balk, B.M. (2009a), On the relation between grossoutput and valueadded based productivity measures: The importance of the Domar factor. Macroeconomic Dynamics, this issue. Balk, B.M. (2009b), Measuring productivity change without neoclassical assumptions: a conceptual analysis. Chapter 4 in Price and Productivity Measurement: Volume 6—Index Number Theory, W.E. Diewert, B.M. Balk, D. Fixler, K.J. Fox and A.O. Nakamura (eds.), Victoria, Canada: Trafford Press. Banks, J., R. Blundell and A. Lewbel (1997), Quadratic Engel curves and consumer demand. Review of Economics and Statistics 79, 527539. Barnett, W. A. and S. Choi (1989), A Monte Carlo study of tests of blockwise weak separability. Journal of Business and Economic Statistics 7, 363377. Barnett, W. A. and J. H. Hahm (1994), Financial firm production of monetary services: a generalized symmetric Barnett variableprofit function approach. Journal of Business and Economic Statistics 12, 3346. Barnett, W.A. and P. de Peretti (2009), Admissible clustering of aggregator components: A necessary and sufficient stochastic seminonparametric test for weak separability. Macroeconomic Dynamics, this issue. Barnett, W. A. and A. Serletis (1990), A dispersion dependency diagnostic test for aggregation error: with applications to monetary economics and income distribution. Journal of Econometrics 43, 543. Reprinted in W. A. Barnett and A. Serletis (eds.) The Theory of Monetary Aggregation, 2000, NorthHolland, Amsterdam, chapter 9, 534. Barnett, W. A. and A. Serletis (2008), Consumer preferences and demand systems. Journal of Econometrics 147, 210224. Barnett, W. A. and G. Zhou (1994), Financial firms’ production and supplyside monetary aggregation under dynamic uncertainty. Federal Reserve Bank of St. Louis Review 76, 133165. Barnett, W.A., M. Chauvet and H.L.R. Tierney (2009), Measurement error in monetary aggregates: A Markov switching factor approach. Macroeconomic Dynamics, this issue. Barnett, W. A., M. Kirova, and M. Pasupathy (1995), Estimating policyinvariant deep parameters in the financial sector when risk and growth matter. Journal of Money, Credit, and Banking 27, 14021430. Bennet, T.L. (1920), The theory of measurement of changes in cost of living. Journal of the Royal Statistics Society 83, 455462. Bernard, A.B. and C.I. Jones (1996), Comparing apples to oranges: productivity convergence and measurement across industries and countries. American Economic Review 86(5), 12161238. Blackorby, C., D. Primont, and R. R. Russell (1977), On testing separability restrictions with flexible functional forms. Journal of Econometrics 5, 195209. Caves, D.W., L.R. Christensen and W.E. Diewert (1982), Multilateral comparisons of output, input and productivity using superlative index numbers. Economic Journal 92, 7386. Deaton, A. and A. Heston (2008), Understanding PPPs and PPPbased national accounts. NBER Working Paper 14499, National Bureau of Economic Research, Cambridge, MA. Deaton, A.S. and J. Muellbauer (1980), An almost ideal demand system. American Economic Review 70, 312326. Denny, M., M. Fuss and L. Waverman (1981), The measurement and interpretation of Total Factor Productivity in regulated industries, with an application to Canadian telecommunications. pp. 179218 in Productivity Measurement in Regulated Industries, T.G. Cowing and R.E. Stevenson (eds.), New York: Academic Press. Diewert, W.E. (1973), Afriat and revealed preference theory. The Review of Economic Studies 40, 419425. Diewert, W.E. (1976), Exact and superlative index numbers. Journal of Econometrics 4, 114145. Diewert, W.E. (1988), Test approaches to international comparisons. pp. 6786 in Measurement in Economics: Theory and Applications of Economic Indices, W. Eichhorn (ed.), Heidelberg: PhysicaVerlag. Diewert, W.E. (1992a), Exact and superlative welfare change indicators. Economic Inquiry 30, 565582. Diewert, W.E. (1992b), The measurement of productivity, Bulletin of Economic Research 44(3), 163198. Diewert, W.E. (1999), Axiomatic and economic approaches to international comparisons. pp. 1387 in International and Interarea Comparisons of Income, Output and Prices, A. Heston and R.E. Lipsey (eds.), Studies in Income and Wealth, Volume 61, Chicago: The University of Chicago Press. Diewert, W.E. (2005) Index number theory using differences instead of ratios. The American Journal of Economics and Sociology 64:1, 311360. Diewert, W.E. (2008), New methodological developments for the International Comparison Program. Discussion Paper 0808, Department of Economics, University of British Columbia, Vancouver, Canada, V6T 1Z1. Diewert, W.E. (2009), Similarity indexes and criteria for spatial linking. Chapter 8 in Purchasing Power Parities of Currencies: Recent Advances in Methods and Applications, D.S. Prasada Rao (ed.), Cheltenham, UK: Edward Elgar, pp. 155176. Diewert, W.E. and D. Lawrence (2006), Measuring the Contributions of Productivity and Terms of Trade to Australia’s Economic Welfare. Report by Meyrick and Associates to the Productivity Commission, Canberra, Australia. Diewert, W.E. and H. Mizobuchi (2009), “Exact and superlative price and quantity indicators. Macroeconomic Dynamics, this issue. Diewert, W.E. and C.J. Morrison (1986) Adjusting output and productivity indexes for changes in the terms of trade. The Economic Journal 96, 659679. Diewert, W.E. and A.O. Nakamura (2003) Index number concepts, measures and decompositions of productivity growth. Journal of Productivity Analysis 19, 127159. Diewert, W.E. and T.J. Wales (1987) Flexible functional forms and global curvature conditions. Econometrica 55, 4368. Diewert, W.E. and T.J. Wales (1995), Flexible functional forms and tests of homogeneous separability. Journal of Econometrics 67, 259302. Domar, E.D. (1961), On the measurement of technological change. The Economic Journal 71, 709721. Feenstra, R.C., H. Ma and D.S. Prasada Rao (2009), Consistent comparisons of real incomes across time and space. Macroeconomic Dynamics, this issue. Fisher, I. (1922), The Making of Index Numbers, HoughtonMifflin, Boston. 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, 9799. Gini, C. (1931), On the circular test of index numbers. Metron 9:9, 324. Harberger, A.C. (1971), Three basic postulates for applied welfare economics: an interpretive essay. The Journal of Economic Literature 9, 785797. Harrison, G.C. (1918), Cost accounting to aid production, Part I. Industrial Management 56, 273282. Hicks, J.R. (194142), Consumers’ surplus and index numbers. The Review of Economic Studies 9, 126137. Hicks, J.R. (194546), The generalized theory of consumers’ surplus. The Review of Economic Studies 13, 6874. Hill, T.P. (2007), ICP 20032006 Handbook. Chapters 1115, Washington D.C.: The World Bank. http://siteresources.worldbank.org/ICPINT/Resources/Ch11.doc Hill, R.J. (1997), A taxonomy of multilateral methods for making international comparisons of prices and quantities. Review of Income and Wealth 43(1), 4969. Hill, R.J. (1999), Comparing price levels across countries using minimum spanning trees. The Review of Economics and Statistics 81, 135142. Hill, R.J. (2001), Measuring inflation and growth using spanning trees. International Economic Review 42, 167185. Hill, R.J. (2004), Constructing price indexes across space and time: the case of the European Union. American Economic Review 94, 13791410. Hill, R.J. and T.P. Hill (2009), Recent developments in the international comparison of prices and real output. Macroeconomic Dynamics, this issue. Hotelling, H. (1938), The general welfare in relation to problems of taxation and of railway and utility rates. Econometrica 6, 242269. Inklaar, R. and M.P. Timmer (2009), Productivity convergence across industries and countries: The importance of theory based measurement. Macroeconomic Dynamics, this issue. Jorgenson, D.W. and Z. Griliches (1967), The explanation of productivity change. Review of Economic Studies 34, 249283. Khamis, S.H. (1972), A new system of index numbers for national and international purposes. Journal of the Royal Statistical Society Series A 135, 96121. Kohli, U. (1990), Growth accounting in the open economy: parametric and nonparametric Estimates. Journal of Economic and Social Measurement 16, 125136. Konüs, A.A. (1939), The problem of the true index of the cost of living. Econometrica 7, 1029. Marshall, A. (1890), Principles of Economics. London: The Macmillan Co. Montgomery, J.K. (1937), The Mathematical Problem of the Price Index. Orchard House, Westminster: P.S. King & Son. Neary, J.P. (2004), Rationalizing the Penn World Tables: true multilateral indices for international comparisons of real income. The American Economic Review 94, 14111428. Samuelson, P.A. (1974), Complementarity—an essay on the 40th anniversary of the HicksAllen revolution in demand theory. The Journal of Economic Literature 12, 12551289. Solow, R.M. (1957), Technical change and the aggregate production function”, Review of Economics and Statistics 39, 312320. Townsend, R.M. and S.S. Urzua (2009), Measuring the impact of financial intermediation: Linking contract theory to econometric policy evaluation. Macroeconomic Dynamics, this issue. Varian, H. (1982), The nonparametric approach to demand analysis, Econometrica 50, 945973. Varian, H. (1983), Nonparametric tests of consumer behavior. Review of Economic Studies 50, 99110. Weitzman, M.L. (1988), Consumer’s surplus as an exact approximation when prices are appropriately deflated. The Quarterly Journal of Economics 102, 543553. World Bank (2008), 2005 International Comparison Program: Tables of Final Results. preliminary draft, Washington D.C., February. http://siteresources.worldbank.org/ICPINT/Resources/ICP_finalresults.pdf 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/14868 