Did the cost of living in Canada increase faster for the rich during the period 1950–1980?
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The paper computes the approximate true cost of living indexes from the time series data on price and quantity of nine broadly defined goods and services to show that the cost of living increased faster for the rich in Canada during the three decades. This is due mainly to an increase in the prices of “luxury” goods and services relative to “necessity” goods and services. These conclusions are almost identical to those of several other studies which utilize a different framework and a different time period for analysis.
KeywordsTime Series Economic Theory Series Data Time Series Data True Cost
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