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Best Linear Index Numbers of Prices and Quantities

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Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 25)

Abstract

This article deals with the construction of price and quantity index numbers for an arbitrary number of periods (or geographical units) which satisfy the requirement that the total sum of squares of the discrepancies between true and index-constructed cross-values is minimized. Special attention is paid to the aggregation problem which arises when this method is applied to a group of commodities as well as to subgroups.

Keywords

Characteristic Vector Price Index Index Number Large Root Aggregation Error 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Aitken, A.C.: (1934–35), “On Least-Squares and Linear Combination of Observations,” Proceedings of the Royal Society of Edinburgh, 55, 42–48.Google Scholar
  2. Bowker, A.H.: 1947, “On the Norm of a Matrix,” Annals of Mathematical Statistics, 18, 285–288.CrossRefGoogle Scholar
  3. Frisch, R.: 1936, “Annual Survey of General Economic Theory: The Problem of Index Numbers,” Econometrica, 4, 1–38.CrossRefGoogle Scholar
  4. IJzeren, J. van: 1956, “Three Methods of Comparing the Purchasing Power of Currencies,” Statistical Studies, 7, 3–35.Google Scholar
  5. Zurmühl, R.: 1958, Matrizen, 2nd ed., Berlin-Göttingen-Heidelberg.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1992

Authors and Affiliations

  1. 1.Netherlands School of EconomicsRotterdamThe Netherlands
  2. 2.Stanford UniversityCaliforniaUSA

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