Paasche index

[James Li]

I have the dataframe like:

year Pa Qa Pb Qb Pc Qc ...
1
2
3
...

How do I create the Paasche index for each year. Particularly, I would like to know how to generate the weighted sum of Pit * Qit and Pit * Q0t at a particular year.

[William Lisowski]

Very often a simple description really isn't clear without more detail, or at a minimum it is too difficult to guess at a good answer from what has been shared. When that happens other members will decide not to answer the question, or ask for an improved presentation that could have been provided to begin with.

Please help us help you. Show an example of your actual data (say, prices and quantities of 3 goods over 5 years), not the schematic representation you have given. Work an example by hand using the numbers you present in your example data and tell us what the value of the index should be in at least one of the years other than the first (for which I believe it will be 1). The Statalist FAQ provides advice on effectively posing your questions, posting data, and sharing Stata output.

As it stands, you have limited yourself to responses from members who understand what you mean by a Paasche index, of which I am not one. Nevertheless, the technique does not at first glance appear difficult, but I'm reluctant to spend time inventing data and researching precisely what you mean and what you are likely to want. Especially since, if your P_it and Q_it mean the price and quantiy of good i in year t, then I think you mean P_it * Q_i0 rather than what you have - the total that would have been spent on good i in time t, had the prices been those from time 0. This discrepancy doesn't give me any faith that I understand what you are asking for.

You will find that the time spend preparing a well-formed question will often pay off in a quicker answer that requires less followup.