Can someone explain the difference between Paashe’s Laspeyer’s and Fisher’s price indexes?
I know that Paashe’s index is the gdp deflator and that laspeyers is the CPI. But what is Fishers?
What do each of them represent please give examples
- OiyLv 52 months agoFavorite Answer
Fisher-Price index is a CPI, and is calculated as the geometric mean of the LPI(Laspeyrs) and PPI(Paasche). Or FPI= (LPI x PPI)*0.5