Premium
A restricted‐domain multilateral test approach to the theory of international comparisons*
Author(s) -
Armstrong Keir G.
Publication year - 2003
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.t01-1-00062
Subject(s) - test (biology) , mathematical economics , index (typography) , domain (mathematical analysis) , computer science , mathematics , economics , econometrics , paleontology , mathematical analysis , world wide web , biology
This article develops a novel multilateral test approach to the problem of international comparisons. Many of the associated tests are justified as “reasonable” using the fact that they are direct analogues to properties of the cost‐of‐living index. Further support is bestowed upon the new approach by showing that it is equivalent to an extended version of Diewert's (1986) multilateral test approach. Finally, a number of alternative multilateral comparison formulas are evaluated and the relative superiority of two of them is established.