Explanation:
Fisher's index is designed so that (Fisher price index) × (Fisher quantity index) = Σp₁q₁/Σp₀q₀ (value index), fulfilling the factor reversal test for consistency between price and quantity measures.
Explanation:
Paasche index = Σ(p₁q₁)/Σ(p₀q₁) × 100, using current period quantities (q₁) as weights, which may understate inflation due to substitution effects but reflects current consumption patterns.
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