Additive Index Analysis Approach

Bojidar Russev

Economic Thought journal, 2009, issue 5, 54-68

Abstract: This is a presentation on a new approach for additive index factor analysis. The novelty is, that for the decomposition of the resulting quantity of total growth into the respective sub-growths, the structural characteristics of the extensive factor is clearly outlined. This brings the schemes of the analysis closer to the reality and the factor sub-growths are presented in a much easier and simpler way with a much more transparent formal external entry. The problems concerning the decomposition of the total growth are discussed for both types of weights – basic and reported. The similarities and differences between both types of weighting are formulated as well as their interrelations. The derived theoretical analysis is supported with a real example elaborated on the grounds of the demographic practice in Bulgaria.

JEL-codes: C43 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econth:y:2009:i:5:p:54-68

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