Best linear index numbers of prices and quantities

Authors
Citation
H. Theil,, Best linear index numbers of prices and quantities , Econometrica , 28(2), 1960, pp. 464-480
Journal title
ISSN journal
00129682
Volume
28
Issue
2
Year of publication
1960
Pages
464 - 480
Database
ACNP
SICI code
Abstract
This article deals with the construction of price and quantity index numbers for an arbitrary number of periods (or georgraphical units) which satisfy the requirement that the total sum of squares of the discrepancies between true and index-constructed cross-values is minimized. Special attention is paid to the aggregation problem which arises when this method is applied to a group of commodities as well as to subgroups.