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The Index Number Problem – Construction Theorems - Oxford Scholarship Online
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The Index Number Problem: Construction Theorems

Sydney Afriat


A theft amounting to £1 was a capital offence in 1260 and a judge in 1610 affirmed the law could not then be applied since £1 was no longer what it was. Such association of money with a date is well recognized for its importance in very many connections. Thus arises the need to know how to convert an amount at one date into the right amount at another date. In other words, a price index. The longstanding question concerning how such an index should be constructed is known as ‘The Index Number Problem’. The ordinary consumer price index or CPI represents a practical response to the need. The tr ... More

Keywords: revealed preference, price index, price level, index numbers, index number problem, Irving Fisher, New Formula, Afriat's Theorem

Bibliographic Information

Print publication date: 2014 Print ISBN-13: 9780199670581
Published to Oxford Scholarship Online: April 2014 DOI:10.1093/acprof:oso/9780199670581.001.0001


Affiliations are at time of print publication.

Sydney Afriat, author
Visiting Professor, University of Siena