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Additive Index Analysis Approach


  • Bojidar Russev


This is a presentation on a new approach for additive index factor analysis. The novelty is, that for the decomposition of the resulting quantity of total growth into the respective sub-growths, the structural characteristics of the extensive factor is clearly outlined. This brings the schemes of the analysis closer to the reality and the factor sub-growths are presented in a much easier and simpler way with a much more transparent formal external entry. The problems concerning the decomposition of the total growth are discussed for both types of weights – basic and reported. The similarities and differences between both types of weighting are formulated as well as their interrelations. The derived theoretical analysis is supported with a real example elaborated on the grounds of the demographic practice in Bulgaria.

Suggested Citation

  • Bojidar Russev, 2009. "Additive Index Analysis Approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 54-68.
  • Handle: RePEc:bas:econth:y:2009:i:5:p:54-68

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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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