Mathematical and Quantitative Methods

Additive Index Analysis Approach

Bozhidar Rusev
Received: 15 Jun 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 5/2009
JEL С43

Abstract

This is a presentation on a new approach for additive index factor analysis. The novelty is, that for the decomposition of the resulting quantity of total growth into the respective sub-growths, the structural characteristics of the extensive factor is clearly outlined. This brings the schemes of the analysis closer to the reality and the factor sub-growths are presented in a much easier and simpler way with a much more transparent formal external entry. 
The problems concerning the decomposition of the total growth are discussed for both types of weights - basic and reported. The similarities and differences between both types of weighting are formulated as well as their interrelations. The derived theoretical analysis is supported with a real example elaborated on the grounds of the demographic practice in Bulgaria.

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