INDEX FACTORY ANALYSIS OF PRODUCTION FROM SINGLE AND VARIOUS AGGREGATES OF GOODS ACCORDING TO CHANGES IN

Emil Hristov

Abstract: Proposed is a new methodology for the traditional index factor analysis of the change of production in monetary terms from any homogeneous and heterogeneous sets of goods. The production change index of the whole aggregation is analysed according to factor changes in prices and natural quantities of individual goods. First, an additive factor analysis of the production variation of each individual commodity is made using the author's methodology for the effects of unidirectional and multidirectional factor changes with the discreet odd function of the mathematical signum. Each of the effects obtained (two net and one joint) is summed for all goods. With the three aggregate effects, three net factor indices are compiled, which are then converted into definitive factor indices for the factor effects of all changes for all commodities. With the new indexing method, the unambiguous (only true and accurate) solutions are being found in comparison to the conditional and inaccurate solutions with the multiple factor indices of the prices with constant composition of Laspeyres and Paashe.

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Date published: 2017-08-17