vienna has topped the list in the mercers 2017 quality of living index.
vienna has topped the list in the mercers 2017 quality of living index.
which city has topped the list in the mercers 2017 quality of living index?
vienna
Na
Na
utility is not directly measurable, so the true cost of living index only serves as a theoretical ideal, not a practical price index formula. however, more practical formulas can be evaluated based on their relationship to the true cost of living index. one of the most commonly used formulas for consumer price indices, the laspeyres price index, compares the cost of what a consumer bought in one time period (q) with how much it would have cost to buy the same set of goods and services in a later period. since the utility from q in the first year should be equal to the utility from q in the next year, laspeyres gives the upper bound for the true cost-of-living index. laspeyres only serves as an upper bound, because consumers could turn to substitute goods for those goods that have gotten more expensive and achieved the same level of utility from q for a lower cost. in contrast, a paasche price index uses the cost of a set of goods purchased in one time period with the cost it would have taken to buy the same set of goods in an earlier time period. it can be shown that the paasche is a lower bound for true cost of living index. since upper and lower bounds of the true cost of living index can be found, respectively, through the laspeyres and paasche indices, the geometric average of the two, known as the fisher price index, is a close approximation of the true cost of living index if the upper and lower bounds are not too far apart.
cost-of-living index