DOI: 10.57760/sciencedb.06907
title: Generating the Consumption-Innovation Price Index
title: Generating the Consumption-Innovation Price Index

description: The study, 'Equilibrium of Relations that subsist between the Activities of Consumption and the Activities of Innovation (Obrimah 2022ci)' arrives at a price index - the Consumption-Innovation Price Index - that is the periodic mathematical equilibrium of the activities of consumption and the activities of innovation. Seminally, Lancaster (1966) motivates the existence of a Consumption-Innovation Equilibrium, equivalently the existence of a Consumption-Innovation Price Index. Obrimah (2022ci) is the first study to arrive at a mathematical formulation of a Consumption-Innovation Price Index (CIPI). The data and the Stata program in this submission facilitate replication of the CIPI that is obtained in Obrimah (2022ci) and the antecedent regression results, all of which establish that CIPI and it's derivative - the 'frequency of savings-depleting innovations (FI)' - both outperform GDP Per Capita as measures of country equilibriums. As ought to be expected, FI resides between 0 and 1, as such has parameterization, explicitly as a frequency curve. A lower (respectively, higher) score on CIPI evinces, not a lower (respectively, higher) frequency of, but rather lower (respectively, higher) price levels that are induced by savings-enhancing (respectively, savings-depleting) innovations. In stated respect, if CIPI (cast as the dependent variable in a regression) increases with some variable of interest (independent variable), the variable of interest contributes to inflationary pressures. If, on the contrary, CIPI decreases with some variable of interest, the variable of interest contributes to deflationary pressures. In Obrimah (2022ci), the demand for education is shown to be associated with aspirations for savings-depleting innovations, indicating the demand for education can be either of positional or hedonistic.
description: The study, 'Equilibrium of Relations that subsist between the Activities of Consumption and the Activities of Innovation (Obrimah 2022ci)' arrives at a price index - the Consumption-Innovation Price Index - that is the periodic mathematical equilibrium of the activities of consumption and the activities of innovation. Seminally, Lancaster (1966) motivates the existence of a Consumption-Innovation Equilibrium, equivalently the existence of a Consumption-Innovation Price Index. Obrimah (2022ci) is the first study to arrive at a mathematical formulation of a Consumption-Innovation Price Index (CIPI). The data and the Stata program in this submission facilitate replication of the CIPI that is obtained in Obrimah (2022ci) and the antecedent regression results, all of which establish that CIPI and it's derivative - the 'frequency of savings-depleting innovations (FI)' - both outperform GDP Per Capita as measures of country equilibriums. As ought to be expected, FI resides between 0 and 1, as such has parameterization, explicitly as a frequency curve. A lower (respectively, higher) score on CIPI evinces, not a lower (respectively, higher) frequency of, but rather lower (respectively, higher) price levels that are induced by savings-enhancing (respectively, savings-depleting) innovations. In stated respect, if CIPI (cast as the dependent variable in a regression) increases with some variable of interest (independent variable), the variable of interest contributes to inflationary pressures. If, on the contrary, CIPI decreases with some variable of interest, the variable of interest contributes to deflationary pressures. In Obrimah (2022ci), the demand for education is shown to be associated with aspirations for savings-depleting innovations, indicating the demand for education can be either of positional or hedonistic.