Marshall-edgeworth method, Financial Management

Marshall-Edgeworth Method

Marshall-Edgeworth method uses both the current year as well as the base year prices and quantities. Marshall-Edgeworth Index can be computed using the following formula,

Marshall-Edgeworth Index = 2003_marshall edgeworth method1.png x 100

where Q0, Q1, P0 and P1 follow the usual notations.

Marshall-Edgeworth Index

319_marshall edgeworth method.png

Marshall-Edgeworth Index is simple to construct but suffers from the problems in data collection. However, the Marshall-Edgeworth index closely approximates the results obtained by the Fisher's Ideal index.

Posted Date: 9/17/2012 2:52:06 AM | Location : United States







Related Discussions:- Marshall-edgeworth method, Assignment Help, Ask Question on Marshall-edgeworth method, Get Answer, Expert's Help, Marshall-edgeworth method Discussions

Write discussion on Marshall-edgeworth method
Your posts are moderated
Related Questions
In indexed bonds, the principal and coupon payments are linked to the market index like inflation and price index. Index bonds are attractive to investors


Global Equity Indexes: As described earlier in this chapter, there are several stock market indexes available which depict the performance of particular sectors and a country a

Explain about the investment decision- financial management The investment decision relates to selection of assets in which funds would be invested by a firm. Assets which can

Performance budget: it involves evaluation of the performance of the organization in the context of both overall and specific objectives of the organization. As per the National I

a) Gross profit shows the difference between a firm's sales revenues and its direct cost of sales (COGS). Net profit, however, is calculated after deducting overheads (expenses) fr

Under what circumstance would the U.S. dollar and the Canadian dollar be said to have achieved purchasing power parity? The U.S. dollar and the Canadian dollar would be referred

1. If Robinson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. 2. Construct Robinson’s market va

Accounting Rate of Return (ARR): This technique relies on the rate of return every project will earn over its life. It takes the help of accounting profit while calculating the

You invest $1,000 at an annual interest rate of 5% compounded continuously. How much is your balance after 8.5 years?  How long will it take you to accrue a balance of $4,000? What