Econometrica Vol. 1 No. 2 1933
Some Considerations on the Analysis of the Prices of Competing or Substitute Commodities
Abstract
INVESTIGATORS attempting to measure the forces responsible for the variations in the price of an individual commodity have almost always recognized that the supply and price of other commodities which might be used for the same purpose might influence both the price at which a given quantity of the commodity would be sold and the quantity of the commodity which would be purchased at a given price. Thus the production of corn has been considered as a factor in studying the price of oats;' the price of beef steers has been considered in studying the price of hogs ;2 hog prices have been considered in studying beef prices;3 supplies of other fresh fruits have been examined in studying cantaloupe prices;4 prices of hogs, steers, and veal, have been included in studying lamb prices;5 supplies of sweet potatoes and corn meal have been considered in analyzing movements in rice prices;6 and similar efforts have been made to recognize the influence of competing products in other studies of prices. In a recent brilliant paper, Bean and Thorne showed that changes in prices which previously had been ascribed to secular trends in demand were really related to changes in consumer purchasing power as indicated by the index of payrolls.7 This analysis included the price of beef as a factor in explaining changes in
- DOI
- 10.2307/1907091
- Volume
- 1
- Issue
- 2
- Pages
- 172
- Sources
- openalex crossref