Journal of Productivity Analysis· 2026Q1
On the theory and practice of proper indexes
- 1citations
- Q1SCImago
- 2026year
Short summary
A new axiomatic framework for index number theory, termed 'Proper Index', is presented, offering an alternative to existing approaches for measuring output, input, and productivity.
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Key points
- Introduces O’Donnell’s axiomatic approach and the concept of a 'Proper Index' for economic measurement.
- Compares the 'Proper Index' approach with basket, stochastic, and economic approaches to index number theory.
- Illustrates index computations using US consumption data (2000-2025).
- Discusses practical issues in index compilation: the lack of matching and extension problems.
- Proposes an alternative axiomatic framework to O’Donnell’s axioms.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract The paper outlines O’Donnell’s axiomatic approach to index number theory that he applies to the measurement of output, input and productivity. His concept of a Proper Index is related to other approaches to index number theory in the producer context. The alternative approaches that are discussed are basket approaches, stochastic approaches, axiomatic approaches and economic approaches. O’Donnell’s approach and other approaches are illustrated by the computation of various indexes using US consumption data for the years 2000–2025. The paper also discusses two important problems that compilers of producer price and quantity indexes face: the lack of matching problem and the extension problem. An alternative axiomatic framework to O’Donnell’s axioms is discussed.
The authors' abstract, as published at the source. Journal of Productivity Analysis, 2026 · DOI ↗
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Field: Management Science and Operations Research
Management Science and Operations ResearchDecision Sciences