IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Chain Drift in Leading Superlative indexes

Listed author(s):
  • Christian Ehemman

    (Bureau of Economic Analysis)

Registered author(s):

    Chain drift is the difference between the rate of change calculated by chaining an index over a multi period interval and that obtained using endpoints only. This intransitivity can produce ambiguity in estimated growth rates if the “correct” linking interval is not known. The present paper compares the propensity for chain drift in two leading superlative index number formulas: the Fisher and the Tornqvist. It is shown, both empirically and theoretically, that the Tornqvist index is less affected by chain drift than is the Fisher. Under certain conditions, the sign of chain drift in the Fisher index can be predicted.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Bureau of Economic Analysis in its series BEA Papers with number 0054.

    in new window

    Date of creation: Dec 2005
    Handle: RePEc:bea:papers:0054
    Contact details of provider: Phone: 202-482-4883
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bea:papers:0054. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bryn Whitmire)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.