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Title: A study on consistency in aggregation in index decomposition analysis
Keywords: Index Decomposition Analysis, index number theory, consistency in aggregation, disaggregation, aggregation, aggregator function
Issue Date: 10-Nov-2005
Citation: ALEXIA VAN DER CRUISSE DE WAZIERS (2005-11-10). A study on consistency in aggregation in index decomposition analysis. ScholarBank@NUS Repository.
Abstract: Index Decomposition Analysis (IDA) has been used since the 1970s and researchers have developed numerous methods. Nowadays, the challenge is to find a common agreement as to which method is the best. This agreement should be reached through the study of the theoretical properties established by predefined tests. Among these tests, the consistency in aggregation has not yet been studied in IDA and this study focuses exclusively on this test.The definition given by Vartia is restrictive and researchers consider three types of approximations: the aggregator function, the residual term, and numerical approximations. We define three degrees of consistency in aggregation to include more methods: type A, type B and type C. However, in some situations consistency in aggregation is only partially fulfilled with decomposition methods consistent with type A. After this study, we find that the Log-Mean Divisia Index I is the best method considering consistency in aggregation.
Appears in Collections:Master's Theses (Open)

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