# Questions tagged [price-index]

The tag has no usage guidance.

33 questions
Filter by
Sorted by
Tagged with
1k views

### What does a stock market index stand for?

I know that a stock market index (like S&P, NIKKEI, etc.) is computed from the prices of selected stocks, but I was wondering why the name of the currency is almost never expressed. For example, ...
• 253
180 views

### Should Prices (or Price Indices) be modelled with deterministic trend?

I always face a dilemma on whether to assume prices to have a time trend or not while modelling. It is also partly a statistics problem. Let me explain. Assume I have time series, $y_t$ of price of a ...
• 1,735
66 views

### About the 9 tests on Index number theory to evaluate the efficency of the different types of price indexes

Correct me if I'm wrong, I've seen a section in Wikipedia about Index number theory and I've understand it as "if an index x (Laspeyres, Paasche, etc.) satisfies all of this test, then it's 100% ...
154 views

### Difference between chained CPI and normal CPI in simple terms

I am taking a community college level intro to macro course, and while self-studying the text, I came across the concept of C-CPI or chained CPI. While I feel I have a grasp as to what CPI is, I have ...
• 355
35 views

### How does "Buffet Indicator" work when market cap(nominator) is daily & GDP(denominator) is quarterly?

Simple question about "Buffet Indicator", but more like a question regarding the economic indicators in general. Buffet Indicator = mkt cap / GDP But as stated in the title, the market cap ...
• 207
49 views

• 117
33 views

### What would be the issue if we approach inflation analysis without considering consumption bundles?

The CPI for use in calculating the rate of inflation is based off of Laspeyres' index, which is essentially the ratio of dot products of the price vector and a quantity vector. What kind of analysis ...
33 views

### Should I care about the actual CPI value or just the rate of change?

I'm trying to understand the Y-axis of the Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average: https://fred.stlouisfed.org/series/CUSR0000SETA01 BLS.gov states that the ...
• 103
48 views

### Why would an investor choose to invest in one index fund as opposed to another?

Assuming no transaction costs or management fees, why would an investor choose to invest in a fund tracking the Nikkei 225 over say the S&P500. If I was quite bullish on Japan, and I made the ...
2k views

### How can I adjust the base year of this price index?

I am given the following data for GDP deflator: 1997: 100.0 1998: 100.8 1999: 102.5 2000: 109.9 2001: 112.5 2002: 115.9 2003: 119.7 2004: 122.1 2005: 126.5 ...and so on. Currently, 1997 is ...
• 333
37 views

### What does the sun product of price times quantity divided by average price

I have a very simple question, what is the meaning, if any, of this? I.e. Economically what does the following calculation mean?  \left(\frac{(Q1\cdot P1)+(Q2\cdot P2)+(Q3\cdot P3)}{Q1 + Q2 + Q3}\...
66 views

### Interpretation of price indices

How can cpi 3.41 and Wpi 3.54 be interpreted? I know that cpi gives the inflation rate but what is it that we understand from these figures?
• 139
50 views

### How to calculate price index for natural gas in India?

Ministry of commerce and industry of India doesn't provide WPI index for Natural Gas. Is there a way to calculate the same?
465 views

• 101