|
Törnqvist Index
In economics, the Törnqvist index is a price or quantity index. In practice, Törnqvist index values are calculated for consecutive periods, then these are strung together, or "'' chained''". Thus, the core calculation does not refer to a single base year. Computation The price index for some period is usually normalized to be 1 or 100, and that period is called "base period." A Törnqvist or Törnqvist-Theil price index is the weighted geometric mean of the price relatives using arithmetic averages of the value shares in the two periods as weights. The data used are prices and quantities in two time-periods, (t-1) and (t), for each of ''n'' goods which are indexed by ''i''. If we denote the price of item ''i'' at time t-1 by p_, and, analogously, we define q_ to be the quantity purchased of item ''i'' at time t, then, the Törnqvist price index P_t at time t can be calculated as follows: :\frac = \prod_^\left(\frac\right)^ The denominators in the exponent are the sums of to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank Of Finland
The Bank of Finland ( fi, Suomen Pankki, sv, Finlands Bank) is the central bank of Finland. It views itself as the fourth oldest surviving central bank in the world, after Sweden's Riksbank, the Bank of England, and the Bank of France. History The precursor of Bank of Finland, ''Waihetus-, Laina- ja Depositioni-Contori Suomen Suuren-ruhtinaanmaassa'' (The Exchange, Loan and Deposit Office of the Grand Duchy of Finland), was established on 1 March 1812 in the city of Turku by Alexander I of Russia. In 1819 it was relocated to Helsinki. Until 1840 the main purpose of the bank was to carry out currency reform to introduce Imperial ruble. The Bank created and regulated the Finnish Markka from its inauguration in 1860 until Finland adopted the euro in 1999. Mandate, ownership and organization The Bank of Finland is Finland's central bank and a member of the European System of Central Banks and of the Eurosystem. It is Finland's monetary authority, and is responsible for the countr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Leo Törnqvist
Leo Waldemar Törnqvist (14 February 1911 – 18 April 1983) was one of the first professors of statistics in Finland, and the first to achieve international recognition. He taught at the University of Helsinki from 1943 to 1974, and developed techniques that are used in official price and productivity statistics.Törnqvist, Leo in '''' .Törnqvist, Leo (1911 – 1983) '' |
Aggregation Problem
An ''aggregate'' in economics is a summary measure. It replaces a vector that is composed of many real numbers by a single real number, or a scalar. Consequently there occur various problems that are inherent in the formulations that use aggregated variables.Franklin M. Fisher (1987). "aggregation problem," '' The New Palgrave: A Dictionary of Economics'', v. 1, pp.53-55 The aggregation problem is the difficult problem of finding a valid way to treat an empirical or theoretical aggregate as if it reacted like a less-aggregated measure, say, about behavior of an individual agent as described in general microeconomic theory. The second meaning of "aggregation problem" is the theoretical difficulty in using and treating laws and theorems that include aggregate variables. A typical example is the aggregate production function. Another famous problem is Sonnenschein-Mantel-Debreu theorem. Most of macroeconomic statements comprise this problem. Examples of aggregates in micro- and ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Curve
In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms optimize their production process by minimizing cost consistent with each possible level of production, and the result is a cost curve. Profit-maximizing firms use cost curves to decide output quantities. There are various types of cost curves, all related to each other, including total and average cost curves; marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves; and variable cost curves. Some are applicable to the short run, others to the long run. Notation There are standard acronyms for each cost concept, expressed in terms of the following descriptors: *SR = short-run (when the amount of physical capital cannot be adjusted) *LR = long-run (when all input amounts can be adjusted) *A = average (per unit of output) *M = marginal (for an additional unit of outp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Production Function
In economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods. The production function is one of the key concepts of mainstream neoclassical theories, used to define marginal product and to distinguish allocative efficiency, a key focus of economics. One important purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors, while abstracting away from the technological problems of achieving technical efficiency, as an engineer or professional manager might understand it. For modelling the case of many outputs and many inputs, researchers often use the so-called Shephard's distance functions or, alternatively, directional distance functions, which are generalizations of the simple production function in economics. In macroeconomics, aggregate production functions are estimated to create a fram ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
List Of Price Index Formulas
A number of different formulae, more than a hundred, have been proposed as means of calculating price indexes. While price index formulae all use price and possibly quantity data, they aggregate these in different ways. A price index aggregates various combinations of base period prices (p_0), later period prices (p_t), base period quantities (q_0), and later period quantities (q_t). Price index numbers are usually defined either in terms of (actual or hypothetical) expenditures (expenditure = price * quantity) or as different weighted averages of price relatives (p_t/p_0). These tell the relative change of the price in question. Two of the most commonly used price index formulae were defined by German economists and statisticians Étienne Laspeyres and Hermann Paasche, both around 1875 when investigating price changes in Germany. Laspeyres Developed in 1871 by Étienne Laspeyres, the formula: : P_=\frac compares the total cost of the same basket of final goods q_0 at the old ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Natural Logarithms
The natural logarithm of a number is its logarithm to the base of the mathematical constant , which is an irrational and transcendental number approximately equal to . The natural logarithm of is generally written as , , or sometimes, if the base is implicit, simply . Parentheses are sometimes added for clarity, giving , , or . This is done particularly when the argument to the logarithm is not a single symbol, so as to prevent ambiguity. The natural logarithm of is the power to which would have to be raised to equal . For example, is , because . The natural logarithm of itself, , is , because , while the natural logarithm of is , since . The natural logarithm can be defined for any positive real number as the area under the curve from to (with the area being negative when ). The simplicity of this definition, which is matched in many other formulas involving the natural logarithm, leads to the term "natural". The definition of the natural logarithm can then b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Divisia Index
A Divisia index is a theoretical construct to create index number series for continuous-time data on prices and quantities of goods exchanged. The name comes from François Divisia who first proposed and formally analyzed the indexes in 1926, and discussed them in related 1925 and 1928 works. The Divisia index is designed to incorporate quantity and price changes over time from subcomponents that are measured in different units, such as labor hours and equipment investment and materials purchases, and to summarize them in a time series that summarizes the changes in quantities and/or prices. The resulting index number series is unitless, like other index numbers. In practice, economic data are not measured in continuous time. Thus, when a series is said to be a Divisia index, it usually means the series follows a procedure that makes a close analogue in discrete time periods, usually the Törnqvist index procedure or the Fisher Ideal Index procedures.Diewert, W.E. 1993The early hi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multifactor Productivity
In economics, total-factor productivity (TFP), also called multi-factor productivity, is usually measured as the ratio of aggregate output (e.g., GDP) to aggregate inputs. Under some simplifying assumptions about the production technology, growth in TFP becomes the portion of growth in output not explained by growth in traditionally measured inputs of labour and capital used in production. TFP is calculated by dividing output by the weighted geometric average of labour and capital input, with the standard weighting of 0.7 for labour and 0.3 for capital. Total factor productivity is a measure of productive efficiency in that it measures how much output can be produced from a certain amount of inputs. It accounts for part of the differences in cross-country per-capita income. For relatively small percentage changes, the rate of ''TFP'' growth can be estimated by subtracting growth rates of labor and capital inputs from the growth rate of output. Background Technology growth and e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
