Paasche & the Fisher Ideal Index: Substitution Bias
This lesson is part of the course
In this lesson
You compute Laspeyres and Paasche from the same prices, combine them into the Fisher index and see which way substitution pushes each one.
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Lessons in this course
- Simple Index Numbers & Rebasing (Base = 100) Locked
- Price Relatives & Unweighted Indices: Carli, Dutot, Jevons Locked
- The Laspeyres Price Index: a Fixed Basket with SUMPRODUCT Locked
- Paasche & the Fisher Ideal Index: Substitution Bias Locked
- Quantity & Value Indices: Price × Quantity = Value Locked
- Chain-Linking an Annual Index Locked
- Deflating: Nominal to Real with a Price Index (Real Revenue & Real Wages) Locked
- Weights & Contributions: Which Item Drove Inflation? Locked