Generating the Consumption-Innovation Price Index

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.