price index

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Related to Paasche price index: Laspeyres price index

price index

[′prīs ‚in‚deks]
(statistics)
A statistic used primarily in economics to indicate an average level of prices in a time series; combines several series of price data into one index.
References in periodicals archive ?
Also, let [W.sup.P.sub.L] be the aggregate Paasche price index for wages and let [W.sup.P.sub.it] be the Paasche index of wages.
In general, if homotheticity is violated, the Paasche price index may actually exceed the Laspeyres price index (see Deaton and Muellbauer, 1980).
When real output is computed using fixed-base Laspeyres quantity and Paasche price indexes, (2) aggregate real output is exactly equal to the sum of its individual components.
Kohli (2002), building on the work of Reinsdorf, Diewert and Ehemann (2000), found that a particular expression for a Fisher quantity index follows naturally from taking the geometric mean of the Laspeyres and Paasche price indexes, expressed in terms of share-weighted sums.