A0471
Title: How to measure the average rate of change
Authors: Mikhail Sokolov - St. Petersburg State University; European University at St. Petersburg; IRES RAS (Russia) [presenting]
Aleksandr Alekseev - University of Regensburg (Germany)
Abstract: A theory of the average rate of change (ARC) measurement is developed. Using an axiomatic approach, the conventional ARC measures (such as the difference quotient and the continuously compounded growth rate) are generalized in several directions: to outcome variables with arbitrary connected domains, to not necessarily time-shift invariant dependence on time, to more general (than an interval) time sets, to a path-dependent setting, and to a benchmark-based evaluation. We also revisit and generalize the relationship between the ARC measurement and intertemporal choice models.
