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DIVISIA APPROACH

Statistics Directorate    
Definition:
A price or quantity index that treats both prices and quantities as continuous functions of time. By differentiation with respect to time, the rate of change in the value of the aggregate in question is partitioned into two components one of which are the price index and the other the quantity index.

Context:
In practice, the indices cannot be calculated directly but it may be possible to approximate them by chain indices in which the links consist of period to period indices linking consecutive periods.

Source Publication:
ILO, IMF, OECD, Eurostat, UNECE, World Bank, 2004, Producer Price Index Manual: Theory and Practice, International Monetary Fund, Washington DC.

Hyperlink:
http://www.imf.org/external/np/sta/tegppi/index.htm

Statistical Theme: Prices and purchasing power partities

Created on Monday, February 17, 2003

Last updated on Friday, July 08, 2005