Term:
Paasche price index
Definition:

A basket index in which the basket is composed of the actual quantities of goods and services in the later of the two periods compared. The later period serves as the weight reference period and the earlier period as the price reference period. The Paasche index can also be expressed as a weighted harmonic average of the price relatives that uses the actual expenditure shares in the later period as weights.

Domain:
Economics & National Accounts
Source:
Consumer price index manual, 2004
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