Marshal-Edgeworth Index

The Marshal-Edgeworth index is calculated considering the mean of price and quantities between the base period (zero) and the current period (actual).

Thus, the Marshal-Edgeworth price index measures the change in total spent to acquire an average quantity between the base and current periods.

    \[ IM_P=\frac{\sum{(Q_0+Q_t)*P_t}}{\sum{(Q_0+Q_t)*P_0}} \]

The Marshal-Edgeworth quantity index uses the average price between base and current period.

    \[ IM_Q=\frac{\sum{(P_0+P_t)*Q_t}}{\sum{(P_0+P_t)*Q_0}} \]


IMP = Marshal-Edgeworth price index

IMQ = Marshal-Edgeworth quantity index

Po = price on base period (zero)

Pt = price on current period (actual)

Q0 = quantity on base period

Qt = quantity on current period (atual)

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