THE CASE AGAINST DIVISIA INDEX NUMBERS AS A BASIS IN A SOCIAL ACCOUNTING SYSTEM*

W. J. Merrilees

Review of Income and Wealth, 1971, vol. 17, issue 1, 81-85

Abstract: The purpose of this paper is to explore the question of at what stage should Divisia index numbers be introduced–within the social accounting schema proper or in the explanatory stage following? Three major reasons are given to support the case that Divisia index numbers have no role to play in measurement, but should and do provide a powerful tool in the explanation of productivity change.

Date: 1971
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