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Fisher Ideal Index×Growth Accounting×
FieldEconomicsEconomics
FamilyProcess / pipelineRegression model
Year of origin19221957
OriginatorIrving Fisher; superlative theory by W. Erwin DiewertRobert Solow; Dale Jorgenson & Zvi Griliches
TypeSuperlative index number for aggregating prices or quantitiesProduction-function-based decomposition of output growth
Seminal sourceFisher, I. (1922). The Making of Index Numbers: A Study of Their Varieties, Tests, and Reliability. Boston: Houghton Mifflin. ISBN: 9780678006597Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312–320. DOI ↗
AliasesFisher Index, Fisher's Ideal Index, Ideal Index Number, Fisher Price IndexSources of Growth Analysis, Solow Growth Accounting, Production Function Decomposition, Total Factor Productivity Accounting
Related33
SummaryThe Fisher ideal index is a superlative index number that aggregates many individual prices or quantities into a single measure of overall change by taking the geometric mean of the Laspeyres (base-weighted) and Paasche (current-weighted) indices. Proposed by Irving Fisher in his 1922 treatise as the 'ideal' formula because it passes a battery of desirable axiomatic tests, it was later shown by W. Erwin Diewert to be exact for a flexible (quadratic) aggregator, giving it both an axiomatic and an economic-theoretic justification. It is the index of choice when a measure must satisfy the time-reversal and factor-reversal tests exactly.Growth accounting is a production-function-based framework that decomposes the growth rate of aggregate output into the contributions of growth in measured inputs — typically capital and labour — and a residual that captures the growth in total factor productivity (TFP). Building on Robert Solow's 1957 derivation and refined by Dale Jorgenson and Zvi Griliches in 1967, it weights each input's growth rate by its share of national income and attributes whatever output growth is left unexplained to improvements in productivity, technology, and efficiency.
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ScholarGateCompare methods: Fisher Ideal Index · Growth Accounting. Retrieved 2026-06-24 from https://scholargate.app/en/compare