A Note on the Characterization of Fisher’s “Ideal Index”

Funke, Helmut; Voeller, Joachim

doi:10.1007/978-3-662-41486-6_8

Cited by 12 publications

(5 citation statements)

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“…For the FPI, we adopt the Fisher index ( ), which attempts to compromise between these competing tendencies to overstate and understate inflation. Specifically, the Fisher index is the geometric mean of Laspeyres and Paasche: Although it is generally acknowledged that a perfect index formula may not exist, economic theory shows that Fisher is the best index among candidates that are averages of the more intuitive Laspeyres and Paasche indices [10] , [12] .…”

Section: Methodsmentioning

confidence: 99%

Fish Is Food - The FAO’s Fish Price Index

et al. 2012

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World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO) of the United Nations–which compiles prices for other major food categories–has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI) relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability.

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Section: Methodsmentioning

confidence: 99%

Fish Is Food - The FAO’s Fish Price Index

et al. 2012

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“…In fact, the Fisher price index satisfies all twenty tests utilised by Diewert (1992). Moreover, satisfactory axiomatic characterizations of P F have been obtained; see Funke and Voeller (1978;180) (1979) and Diewert (1992). Thus, from the viewpoint of the test approach to index number theory, the Fisher quantity index Q F defined by (31) and the corresponding Fisher price index P F defined by (43) seem to be the best choices.…”

Section: The Test Approach To Index Number Theorymentioning

confidence: 97%

Productivity Indexes and National Statistics: Theory, Methods and Challenges

Diewert

Fox

2019

The Palgrave Handbook of Economic Performance Analysis

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“…When more extensive lists of tests are compiled, the Fisher ideal price index P, continues to satisfy more tests than other leading candidates; see Diewert ( 1976Diewert ( , p. 13 1) ( 1989. Moreover, satisfactory axiomatic characterizations of P, have been obtained recently; see Funke and Voeller (1978, p. 1130) (1979 and Diewert (1989). Thus, from the viewpoint of the test approach to index number theory, the Fisher price index PF defined by (60) and the corresponding Fisher quantity index Q, defined by (52) seem to be the best choices.…”

Section: 4 the Test Or Axiomatic Approach To Index Numbersmentioning

confidence: 99%