base period

Quick Reference

The period whose data are identified with the index of 100 (sometimes 1) in constructing an index number. In the UK, for example, in 2007 official data on national income aggregates, year 2003 was used as the base period. Base-weighted or Laspeyres index numbers derive their weights from base-period data, whereas current-weighted or Paasche index numbers do not.

Subjects: Economics — Mathematics.

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