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

Laspeyres' Index

8.4.5

Laspeyres' Index

Laspeyres' Index, named after the German economist Etienne Laspeyres, is a weighted aggregative price index that fixes the weights at base-period quantities — it asks how much the original "basket" of goods would cost at today's prices, compared to what it cost in the base year:

InL=∑pnq0∑p0q0×100I_n^{L} = \dfrac{\sum p_n q_0}{\sum p_0 q_0} \times 100 …

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