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The Marshall-Edgeworth index, credited to Marshall (1887) and Edgeworth (1925), [11] is a weighted relative of current period to base period sets of prices. This index uses the arithmetic average of the current and based period quantities for weighting. It is considered a pseudo-superlative formula and is symmetric. [12]
Laspeyres is mainly known today for his 1871 development of the index number formula method for determining price increases, used for calculating the rate of inflation.A type of this calculation is known today as the Laspeyres Index.
Price indices are represented as index numbers, number values that indicate relative change but not absolute values (i.e. one price index value can be compared to another or a base, but the number alone has no meaning). Price indices generally select a base year and make that index value equal to 100.
In economics, the Törnqvist index is a price or quantity index. In practice, Törnqvist index values are calculated for consecutive periods, then these are strung together, or " chained ". Thus, the core calculation does not refer to a single base year.
A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, which are combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the ...
In this case, a nation's terms of trade is the ratio of the Laspeyre price index of exports to the Laspeyre price index of imports. The Laspeyre export index is the current value of the base period exports divided by the base period value of the base period exports. Similarly, the Laspeyres import index is the current value of the base period ...
It was mentioned that there is possibility to indicate the speed of the economic development in a society by the number bias of the index. Which is a product of the Gerschenkron effect. However, it could add to an unbalanced industrialization period. It is because of the quantity relatives dominates, thus, Laspeyres quantity index goes up. [3]
A hedonic index is any price index which uses information from hedonic regression, which describes how product price could be explained by the product's characteristics.. Hedonic price indexes have proved to be very useful when applied to calculate price indices for information and communication products (e.g. personal computers) and housing, [1] because they can successfully mitigate problems ...