consumer's utility function (or the revenue (GDP) function) is homothetic and if Divisia price indices are used to deflate … instead of continuous Divisia indices; or (c) errors in domestic price indices and PPPs. I develop indicators of the size of … non-homotheticity and chain index approximation error using detailed, unpublished data from the 2005 ICP. I conclude that …

-dependent: the level of a Divisia index is affected not just by the level of prices at the two endpoints but also by the path between … the endpoints. It is also well-known that a Divisia index of the cost of living is path-independent if and only if all … of living. Chain indices are discrete approximations to Divisia indices and it is well known that the latter are path …

This paper shows that in economies with several monies the Bailey–Divisia multidimensional consumers’ surplus formula …