The Translog Utility Function and the Tornqvist Quantity Index

QED Working Paper Number
1434

We re-visit the proposition: utility-change for the translog utility function equals the corresponding Tornqvist quantity index. We observe that the "linear" terms in the translog function must be zero for the result to obtain. We also report on the role of the assumption of homogeneity for the utility function in allowing the result to obtain.

Author(s)

JEL Codes

Keywords

translog function
Tornqvist index

Working Paper

Download [PDF] (109.12 KB)