Term:
Factor reversal test
Definition:

The factor reversal test requires that multiplying a price index and a volume index of the same type should be equal to the proportionate change in the current values (e.g. the “Fisher Ideal” price and volume indexes satisfy this test, unlike either the Paasche or Laspeyres indexes).

Domain:
Economics & National Accounts
Source:
SNA 16.24
arrow-up icon
Feedback