List Of Price Index Formulas
A number of different formulas, more than hundred, have been proposed as means of calculating price indexes. While price index formulas all use price and possibly quantity data, they aggregate these in different ways. A price index aggregates various combinations of base period prices, later period prices, base period quantities, and later period quantities . Price index numbers are usually defined either in terms of (actual or hypothetical) expenditures (expenditure = price * quantity) or as different weighted averages of price relatives . These tell the relative change of the price in question. Two of the most commonly used price index formulas were defined by German economists and statisticians Étienne Laspeyres and Hermann Paasche, both around 1875 when investigating price changes in Germany.
Read more about List Of Price Index Formulas: Laspeyres, Paasche, Unweighted Indexes
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