Term	Marshall-Edgeworth Index
Synonym
Related Term
Source of Definition
Short Definition
Statistical Activity	Inflation measures

Definition
The Marshall-Edgeworth formula uses the arithmetic mean of the quantities purchased in the base and current periods as weights. Like the Fisher ‘Ideal’ index it is impracticable to use as a timely indicator of price change because it requires the use of quantities purchased in the current period. In practice, the Marshall-Edgeworth index and the Fisher Ideal, index give similar results.

(c.f. Laspeyres, Paasche, Fisher Ideal, Tornqvist indexes)

Formula



Example