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INVARIANCE TO CHANGES IN THE UNITS OF MEASUREMENT TEST

Statistics Directorate    
Definition:
A test that may be used under the axiomatic approach which requires that the price index does not change when the physical, or quantity, units to which the prices of the goods or services refer are changed: for example, when the price of some drink is quoted per litre rather than per pint.

Also known as the “commensurability test”.

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 Tuesday, February 18, 2003

Last updated on Wednesday, April 10, 2013