The Four‐Point Formula

S. N. Afriat

in Logic of Choice and Economic Theory

Published in print November 1987 | ISBN: 9780198284611
Published online November 2003 | e-ISBN: 9780191595844 | DOI:
 The Four‐Point Formula

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This is the fourth of five chapters about the cost of living problem and price indices, a typical area for what is understood as choice theory. Together with the previous and next chapters it discusses theoretical matters arising from the finding of S. S. Byushgens (1925) that Irving Fisher's ‘Ideal Index’ is exact if demand is governed by a homogeneous quadratic utility. specifically, it addresses the four‐point formula. the eight sections of the chapter are: median multipliers and levels; centre locus; linear purchasing power; critical locations; elliptical case; hyperbolic case; parabolic limits; and demonstration: Fisher's data.

Keywords: S. S. Byushgens; choice; choice theory; cost of living; demand; economic theory; Irving Fisher; Fisher's Ideal Index; four‐point formula; linear purchasing power; median levels; median multipliers; price index; price theory; purchasing power

Chapter.  12616 words. 

Subjects: Microeconomics

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