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Additive Index Analysis Approach

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  • Bojidar Russev

Abstract

This is a new approach to carry out an additive index factor analysis. The novelty is, that during the decomposition of the total growth of the resulting quantity into the corresponding specific subgrowths, the structural characteristics of the extensive factor is clearly identified. The scheme of the analysis is presented closer to the reality, the factor subgrowths are specified much more easily and simply, at a much clearer formal external entry. The problems arising as a result of the decomposition of the total growth have been discussed for both types of weights – basic weight and survey weight. The differences between both types of weighting are pointed out, as well as the interrelations between them. The derived theoretical formulations are supported by the elaborated real example from the Bulgarian demographic practice.

Suggested Citation

  • Bojidar Russev, 2009. "Additive Index Analysis Approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 138-151.
    • Handle: RePEc:bas:econth:y:2009:i:7:p:138-151
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    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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