Proposition of stochastic postulates for chain indices

Jacek Białek

doi:https://doi.org/10.59170/stattrans-2014-036

Proposition of stochastic postulates for chain indices

Jacek Białek Department of Statistical Methods, University of Łódź, Poland Statistics in Transition new series, vol. 15, 2014, 4, pages: 545-558 Published online: 1 December 2014 https://doi.org/10.59170/stattrans-2014-036

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ABSTRACT

This article presents and discusses a proposition of stochastic postulates for chain indices. The presented postulates are based on the assumption that prices and quantities are stochastic processes and we consider also the case when price processes are martingales. We define general conditions which allow the chain indices to satisfy these postulates

KEYWORDS

chain indices, price index theory, stochastic processes, martingales.

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