The production-theoretic measurement of input price and quantity indices

This paper extends work by Fisher and Shell (1972) on the production-theoretic treatment of output deflation to the case of input deflation (see also Muellbauer, 1972). Input deflation is examined for a multi-product firm (or sector) in three cases: 1. lling at fixed prices, th monopoly power over some outputs, erating as a perfectly competitive industry but facing downward-sloping demand curves. The latter case is particularly complex, and Paasche and Laspeyres bounds are show not to apply. s such as the treatment of quality change (hedonics) are also examined.