Home » Eng Finance »
Finance C
Select topic from the list on the left. Should you not find what you are looking for, please feel free to send us a message and we will try to find it for you.
Picture: MBA Lectures
Chain price index
A price index that is obtained from the combination of partial indices which refer to the previous time periods and permit the weighting scheme to vary from period to period. Consequently, a comparison of prices between 0 and t is indirectly produced as the product of the subindices for each period, and not directly using data only from periods 0 and t. The motivation for allowing the weights to change is to accommodate the continuous introduction of new commodities.
Reference: Oxford Press Dictonary of Economics, 5th edt.
