Order a copy of _Macroeconomic Data: A Users Guide_ from the Federal
Reserve Bank of Richmond. The article "Macroeconomic Price Indexes"
describes this index and its calculation. However, the formula for the
chain index is incorrect and there is an addendum to the article. Be sure
that you get the addendum. The typo is not trivial.
I haven't had the time to get up a simple classroom example of its
caluclation to compare with the fixed weight CPI and fixed price GDP
Deflator. If anyone has a couple of neat examples their posting to the list
would be appreciated by us all.
>On Wed, 1 Nov 1995, Paul Straub wrote:
>
>> Dear Tch-econ-ers,
>>
>> A recent Wall Street Journal article mentioned the chain-weighted
>> method of calculating GDP. Does anybody know what this is?
>>
>> Thanks for your help,
>> Paul
>>
>>
>> Paul G. Straub
>> Emerson E. Evans College of Business
>> University of Rio Grande
>> Rio Grande, OH 45674
>> (614) 245-7284
>> pstraub@urgrgcc.edu
>>
>
>
A. Edward Day "Inflation is the haunting pestilence of the
Department of Economics middle classes. It is the hidden threat
University of Central Florida that disorganized government holds over
P. O. Box 25000 those who try to plan, to save, to
Orlando, FL 32816 be prudent." Theodore H. White