We provide a critique of the use of Fisher’s Ideal
Quantity Index in the construction of the GDP series. Attention is focused on
an alternative which factors nominal GDP increase into a sum of a quantity
index and a price index rather than a product of a quantity index and a price
index. A twenty period example is used to compare approaches.
References
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Hartwick, J. M. (2020). Advanced Introduction to National Accounting. Cheltenham: Edward Elgar.
