• Corpus ID: 124469594

The Index Number Problem: A Dierential Geometric Approach.

@inproceedings{Malaney1996TheIN,
  title={The Index Number Problem: A Dierential Geometric Approach.},
  author={Pia Malaney},
  year={1996}
}

• P. Malaney
• Published 1996
• Economics

The first part of this thesis looks at issues in index number theory. By using techniques developed in differential geometry, it is shown that the socalled index number problem can be resolved by the development of a special economic derivative operator constructed for this purpose. This derivative is shown to give rise to a unique differential geometric index number which is then demonstrated to equal the Divisia index. It is then shown in the second chapter (co-authored with Eric Weinstein) that when placed under similar assumptions, this data based index equals the Konus index, previously asserted to be incalculable in the absence of a knowledge of preference maps. The third chapter deals with rural to urban migration. Based on the risk neutral Todaro model, it has been suggested that raising rural incomes will have the effect of controlling migration to urban labour markets. However, it is shown in this chapter that it in the case of decreasing absolute risk aversion it is possible for increasing income to have the perverse effect of increasing the desirability of migration.