volume index

volume index An index of the real level of production or consumption, in the whole economy or some part of it. A volume index is a weighted average of the production or consumption of some suitably chosen bundle of goods. The weights are the prices of some period. Where 0 is the base period and t the current period, p_it the price and q_it the quantity of good i produced or consumed in period t, a base-weighted, or Laspeyres, volume index is defined byq_B = (∑_ip_i0q_it)/(∑_ip_i0q_i0), and a current-weighted, or Paasche, volume index is defined byq_C = (∑_ip_itq_it)/(∑_ip_itq_i0).