INTRODUCTION TO THE USE OF THE TORNQVIST PRICE INDEX

Authors

  • Miguel A. Martínez-Damián

Keywords:

Inflation, price changes, substitution, aggregation, agricultural economics

Abstract

Supported by aggregation theory, it is suggested to use the Tornqvist price index in the measurement of price changes; this involves including the substitution effect upon such price changes. The proposed index is compared to traditional indices such as Laspeyres, Paasche, and Fisher. In the analyzed sample the Tornqvist index resulted similar to the ideal Fisher index, but the former is easier to interpret and has better aggregation properties.

Downloads

Published

30-06-1999

Issue

Vol. 33 No. 2 (1999): 1999-abr-jun

Section

Notes

License

Agrociencia is published every 45 days, in an English format, and it is edited by the Colegio de Postgraduados. Mexico-Texcoco highway Km. 36.5, Montecillo, Texcoco, Estado de México, CP 56264, Telephone (52) 5959284427. www.colpos.mx. Editor-in-Chief: Dr. Fernando Carlos Gómez Merino. Rights Reserved for Exclusive Use: 04-2021-031913431800-203, e-ISSN: 2521-9766, granted by the National Institute for Author Right.