Marshall-Edgeworth Price Index Calculator
मार्शल-एजवर्थ मूल्य सूचकांक कैलकुलेटर
Calculate the Marshall-Edgeworth Price Index using average of base and current year quantities as weights. Get detailed step-by-step solutions.
| Commodity | P₀ (Base Price) | P₁ (Current Price) | Q₀ (Base Quantity) | Q₁ (Current Quantity) | Action |
|---|
Where:
\( P_{01}^{ME} \) = Marshall-Edgeworth Price Index
\( P_0 \) = Price in base year
\( P_1 \) = Price in current year
\( Q_0 \) = Quantity in base year
\( Q_1 \) = Quantity in current year
\( \sum \) = Summation (total of all commodities)
| Commodity | P₀ | P₁ | Q₀ | Q₁ | (Q₀+Q₁)/2 | P₀ × AvgQ | P₁ × AvgQ | Price Change % |
|---|
Marshall-Edgeworth Price Index: Complete Guide
मार्शल-एजवर्थ मूल्य सूचकांक: पूरी मार्गदर्शिका
What is the Marshall-Edgeworth Price Index?
The Marshall-Edgeworth Price Index, developed by economists Alfred Marshall and Francis Edgeworth, is a method for calculating price changes that uses the average of base and current year quantities as weights. This approach aims to provide a more balanced measure than either Laspeyres or Paasche indices alone.
Complete Formula and Calculation
Marshall-Edgeworth Price Index Formula:
\[ P_{01}^{ME} = \frac{\sum P_1 \left( \frac{Q_0 + Q_1}{2} \right)}{\sum P_0 \left( \frac{Q_0 + Q_1}{2} \right)} \times 100 \]
Alternative Form:
\[ P_{01}^{ME} = \frac{\sum P_1 Q_0 + \sum P_1 Q_1}{\sum P_0 Q_0 + \sum P_0 Q_1} \times 100 \]
Where:
- \( P_{01}^{ME} \) = Marshall-Edgeworth Price Index from period 0 to period 1
- \( P_0 \) = Price of each commodity in the base period
- \( P_1 \) = Price of each commodity in the current period
- \( Q_0 \) = Quantity of each commodity in the base period
- \( Q_1 \) = Quantity of each commodity in the current period
- \( \sum \) = Summation across all commodities
Advantages of Marshall-Edgeworth Index
- Balanced Approach: Uses average quantities from both periods
- Reduces Bias: Less biased than Laspeyres or Paasche alone
- Symmetric: Gives equal weight to both periods’ consumption patterns
- Time Reversal Test: Satisfies the time reversal test unlike Laspeyres or Paasche
Comparison with Other Indices
- vs Laspeyres: Uses average quantities instead of only base year quantities
- vs Paasche: Uses average quantities instead of only current year quantities
- vs Fisher: Marshall-Edgeworth is arithmetic mean based while Fisher is geometric mean based