The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
August 15, 2022
Econometrica: Apr, 1960, Volume 28, Issue 2
https://doi.org/0012-9682(196004)28:2<464:BLINOP>2.0.CO;2-M
p. 464-480
H. Theil
This article deals with the construction of price and quantity index numbers for an arbitrary number of periods (or georgraphical units) which satisfy the requirement that the total sum of squares of the discrepancies between true and index-constructed cross-values is minimized. Special attention is paid to the aggregation problem which arises when this method is applied to a group of commodities as well as to subgroups.
