Best Linear Index Numbers of Prices and Quantities

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


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.


Characteristic Vector Price Index Index Number Large Root Aggregation Error 
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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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