(a) Using the data in Problem 10.3, calculate the expenditure shares on each fuel in 1984 and...
Question:
(a) Using the data in Problem 10.3, calculate the expenditure shares on each fuel in 1984 and the individual price index number series for each fuel, with 1984 = 100.
(b) Use these data to construct the Laspeyres price index using the expenditures shares approach. Check that it gives the same answer as in Problem 10.3(a).
Problem 10.3
The following data show energy prices and consumption in 1984–88 (analogous to the data in the chapter for the years 1999–2003).
(a) Construct a Laspeyres price index using 1984 as the base year.
(b) Construct a Paasche price index. Compare this result with the Laspeyres index. Do they differ significantly?
(c) Construct Laspeyres and Paasche quantity indices. Check that they satisfy the conditions that En = PL × QP etc.
Step by Step Answer:
Statistics For Economics Accounting And Business Studies
ISBN: 978027368308
4th Edition
Authors: Michael Barrow