Publish On: 2019-03-16

# Guy white

Total Post: 819

## Question: Express Marshall-Edgeworth method to construct index numbers

Reply On: 2013-07-13

# Gaurabh Raghav

Total Post: 33

## ANS: Express Marshall-Edgeworth method to construct index numbers

In this method also the current year as well as base year price and quantities are considered. The formula for constructing the index is :

On opening the brackets

It is a simple readily constructed measure, giving a very close approximation to the results obtained by the ideal formula.

**p**_{01}= Σ (q_{0}+ q_{1}) p_{1}/ Σ (q + q_{1}) p_{0}x 100On opening the brackets

**p**_{01}= Σ p_{1}q_{0}+ Σ p_{1}q_{1}/ Σ p_{0}q_{0}+ Σ p_{0}q_{1}x 100It is a simple readily constructed measure, giving a very close approximation to the results obtained by the ideal formula.

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