Much of the dramatic change in skill and wage structure observed in recent years in the United States is believed to stem from the impact of new technology.
The Hicks-Leontief composite commodity theorem permits aggregation of sets of goods that have identical price movements into composite groups of goods, each of which can be treated like a single good for demand analysis.
In this paper we use data on the Norwegian bus transport industry to investigate the effects of different regulatory mechanisms and their economic implications.
The theoretical analysis of tax progressivity has proceeded on the unrealistic assumption that tax liability is never zero, thereby precluding a systematic examination of the progressivity effects of such basic tax reforms as an increase in personal allowances.
This paper presents a revealed preference method for calculating a lower bound on the virtual price of new goods and suggests a way to improve these bounds by using non-parametric expansion paths. This allows the calculation of cost-of-living and price indices when the number of goods changes between periods.
We develop a method which has the main advantage over alternatives of allowing us to combine appealing budget share specifications with a model of quality choice in a way which is fully consistent with demand theory.
