1.Previous
3.Next

modern applications favoring Laspeyres for simplicity and superlative indices like Fisher for accuracy in GDP and inflation metrics.

Unilateral indices

These indices use quantities from a single period--either the base () or current ()--as fixed weights, meaning they do not adjust for changes in consumption patterns over time.

Laspeyres index

Developed in 1871 by Étienne Laspeyres, it uses base-period quantities:

:

It measures the cost of

1.Previous
3.Next