Monday, September 3, 2012

7 September 2012: Does Heterogenity affect the Group Cost Of Living Index?

Sutirtha Bandyopadhyay
Indian Statistical Institute

A Cost Of Living Index is a measure Of change in welfare when price
changes. It is usually defined for an individual/household. But almost
all the real world policies are concerned with the Cost Of Living
Index for a group. There are methods in literature that show the way
to construct Group Cost Of Living Index. The importance of Group Cost
Of Living Index is to tackle the heterogenity in household cost of
living indices and come up with an unique figure. I consider a very
simple set up where heterogenity in budget shares is the only source
of variation in the cost of living indices across households. The
question is whether the heterogenity in budget shares matter to the
change in Group Cost of Living Index. I show that it does for several
important cases.

Date: September 7, 2012
Time: 11:30 A.M.

Seminar Room 2
Indian Statistical Institute Delhi Centre,
7, S. J. S. Sansanwal Marg,
New Delhi-110016 (INDIA)


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