Term:
Chained index weighting
Definition:
Chained index weighting is an alternative way of weighting together the sub aggregates that form GDP. The key difference to the fixed-weight aggregation, used in most countries, is that the prices are continuously updated and that "substitution bias" is avoided and that measures are independent of the choice of base year.
Domain:
Economics & National Accounts
Source:
The OECD Economic Outlook: Sources and Methods