RDP 2018-08: Econometric Perspectives on Economic Measurement Appendix D: Some Choices of f (x), {Utv}, and {qualitytv} are Always Equivalent


let g(·) = A + Bf (·), where A and B are scalars.


So choosing any function f (·) is always equivalent to choosing any of its affine transformations A + B(f (·)).

Now let Inline Equation, where C and D are strictly positive scalars.

The identity in Equation (11) becomes

So for {Utv}, changes to the relativities across t do not matter.