A T�rnqvist quantity index can be calculated analogously using prices for weights.
2.
Swapping p's for q's and q's for p's gives an equation for a quantity index:
3.
Quantity indexes are used in computing aggregate indexes for physical " capital " summarizing equipment and structures of different types into one time series.
4.
Hedonic quality index is similar to quantity index in traditional index theory it measures how the price of obtaining set of characteristics had changed over time.
5.
That approach to monetary aggregation was derived and advocated by William A . Barnett ( 1980 ) and has led to the construction of monetary aggregates based on Diewert's ( 1976 ) class of superlative quantity index numbers.
6.
If one needs matched quantity and price indexes they can be calculated directly from these equations, but it is more common to compute a price index by dividing total expenditure each period by the quantity index so the resulting indexes multiply out to total expenditure.
7.
:BEA uses three methods to estimate GDP . . . The deflation method is used for most components of GDP . The quantity index is derived by dividing the current-dollar index by an appropriate price index that has the base year-- currently 2000-- equal to 100 . . . . The direct valuation method uses quantity indexes that are obtained by multiplying the base-year price by actual quantity data for the index period . ( page 2 of PDF)
8.
:BEA uses three methods to estimate GDP . . . The deflation method is used for most components of GDP . The quantity index is derived by dividing the current-dollar index by an appropriate price index that has the base year-- currently 2000-- equal to 100 . . . . The direct valuation method uses quantity indexes that are obtained by multiplying the base-year price by actual quantity data for the index period . ( page 2 of PDF)
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