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Applied Mathematics · Ch 8 — Index Numbers and Time-based Data

Marshall-Edgeworth's Method

8.4.8

Marshall-Edgeworth's Method

The Marshall-Edgeworth Index, named after statisticians Alfred Marshall and Francis Edgeworth, takes a more direct route to the same goal as Fisher's method — balancing base-period and current-period weights — by simply averaging the base-year and current-year quantities and using that combined weight for both the numerator and the denominator:

InME=∑(q0+qn) pn∑(q0+qn) p0×100I_n^{ME} = \dfrac{\sum (q_0 + q_n)\,p_n}{\sum (q_0 + q_n)\,p_0} \times 100 …