Routledge Economics and the Price Index: 111 Book

Explore the fundamental role of the price index in modern economics with this specialized volume from the Routledge Frontiers of Political Economy series. This book examines the price index as a long-established institution used by statistical offices to communicate the ratio of costs required to maintain a specific standard of living across different time periods. The text provides a deep look into the mechanics of price indices, specifically addressing the requirement for chain consistency. It explains why the product of ratios for successive pairs in a series must match the ratio of the endpoints. Readers will gain a better understanding of how these indices are determined through formulas involving price and quantity data from reference periods. This work is an essential resource for those studying microeconomics and the statistical methods used to track economic changes. It addresses the complex questions surrounding how indices are constructed and the implications of different data selections. Whether you are a student or a professional in the field of economics, this book offers a clear examination of a pervasive economic tool.