NA/05 The use of chain indices for deflating the National Accounts

Al, P.G., B.M. Balk, S. de Boer and G.P. den Bakker (1985).This paper is devoted to the problem of deflating National Accounts and input-output tables. This problem is approached from the theoretical as well as from the practical side. Although the theoretical argument favours the use of chained Vartia-I indices, the current practice of compiling National Accounts restricts to using chained Paasche and Laspeyres indices. Various possible objections to the use of chained indices are discussed and rejected.