TITLE:
Quantity Indices in the Construction of the GDP Series
AUTHORS:
John M. Hartwick
KEYWORDS:
Quantity Indices, GDP Time-Path
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.4,
July
29,
2021
ABSTRACT: 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.