Index Numbers

1. Front Matter

   Pages i-xiv

   PDF

2. Introduction

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 1-10

3. Construction of Index Numbers: A Review

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 11-46

4. Stochastic Approach to Index Numbers

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 47-73

5. Measurement Of Inflation

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 75-110

6. Fixed And Chain Base Index Numbers

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 111-139

7. Index Numbers For Spatial Comparisons

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 141-189

8. Data Related Issues in Index Numbers

   • E. A. Selvanathan, D. S. Prasada Rao

   Pages 191-213

9. Back Matter

   Pages 215-242

   PDF

'An authoritative survey with exciting new insights of special interest to economists and econometricians who analyse intertemporal and interspatial price relationships.' - Professor Angus Maddison, Groningen University This book presents a comprehensive review of recent developments in the theory and construction of index numbers using the stochastic approach, demonstrating the versatility of this approach in handling various index number problems within a single conceptual framework. It also contains a brief, but complete, review of the existing approaches to index numbers with illustrative numerical examples. The stochastic approach considers the index number problem as a signal extraction problem. The strength and reliability of the signal extracted from price and quantity changes for different commodities depends upon the messages received and the information content of the messages. The most important applications of the new approach are to be found in the context of measuring rate of inflation; fixed and chain base index numbers for temporal comparisons and for spatial intercountry comparisons; the latter generally require special index number formulae that result in transitive and base invariant comparisons.

• development
• econometrics
• inflation
• information
• interest
• rating
• university

• Griffith University, Queensland, Australia

  E. A. Selvanathan

• Department of Econometrics, University of New England, Armidale, Australia

  D. S. Prasada Rao

Policies and ethics