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A Linear Programming Model of the Consumer Price Index Food Component
- Source :
- American Journal of Economics and Sociology. 50:421-430
- Publication Year :
- 1991
- Publisher :
- Wiley, 1991.
-
Abstract
- A linear programming model is used to measure the rate of inflation in the food component of the consumer price index A diet model to minimize the cost of a diet subject to constraints on nutritive requirements, variety, pal-atabihty, and menu-function is constructed and the rates of increase in a strict minimum cost model and an expanded constraint model are measured for the period 1980-87 Consistent with the consumer utility literature, it is found that the current Laspeyres index approach to measuring the cost of living in fact provides an upper limit on true cost of living increases Results also show that the cost of maintaining a minimum level of subsistence increases more rapidly than the cost of a more palatable diet Finally, the results show that in fact there is very little room for substitution among food items within a reasonable diet model
- Subjects :
- Inflation
Economics and Econometrics
Sociology and Political Science
Linear programming
media_common.quotation_subject
Subsistence agriculture
Constraint (information theory)
Microeconomics
Food Component
Price index
Econometrics
Economics
Limit (mathematics)
Cost of living
health care economics and organizations
media_common
Subjects
Details
- ISSN :
- 15367150 and 00029246
- Volume :
- 50
- Database :
- OpenAIRE
- Journal :
- American Journal of Economics and Sociology
- Accession number :
- edsair.doi...........ffd98b4db47f8ffef4e2b9c20ff80a63