Uniqueness of the numeraire and consistent valuation in accounting for real values

Abstract

General equilibrium estimates of the real value of commodities and of their aggregates are consistent (comparable) only if based on a single numeraire. Current estimates of aggregates in national accounts are shown to be based on more than one numeraire and thus to be inconsistent and, in particular, to be non-additive, for whatever choice of index number formula used in their computation. Under a weak separability assumption, these aggregates may alternatively be viewed as physical volumes of macro commodities. As such, they need not satisfy the consistency requirement of the real value estimates. However, the existence of such macro commodities is dubious and would they exist, one could still question their usefulness for economic analysis.