It is well known that the use of chained indices in economic accounting systems leads to volume figures (deflated nominal values) that are inherently non-additive. This inconvenience for users is caused by a mathematical impossibility result. Recognizing this state of affairs, in this article a deflation method will be developed that uses chained indices of a certain functional form but leads to volume figures that exhibit additivity and can be nicely interpreted.

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ERIM Article Series (EAS)
Journal of Economic and Social Measurement
Erasmus Research Institute of Management

Balk, B., & Reich, U. P. (2008). Additivity of national accounts reconsidered. Journal of Economic and Social Measurement, 165–178. Retrieved from