What Are Indices

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What Are Indices
What Are Indices

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The index is a relative indicator that characterizes the change in any social or scientific phenomenon over a certain period of time in relation to the plans for its change, or - its change in space.

What are indices
What are indices


Step 1

Index is an index of names, designations. A specific designation system - drug indexes, postal codes, etc. Comparison of objects of study by time characteristic is most often used. The index method, in addition, is an analysis tool for determining existing relationships between several phenomena or groups of phenomena. In this case, whole systems of indexes are used for accounting.

Step 2

The indices are characterized by the following indicators:

According to the object of research, indices of quantitative indicators (indices of production, consumption, etc.) and qualitative indicators (indices of prices, productivity, wages) are distinguished.

Step 3

According to the integrity of the study of objects of a certain category, individual indices are distinguished, which characterize the individual components of a phenomenon, and general indices, which give an idea of ​​the change in the entire phenomenon and averages that are derivatives of the former.

Step 4

According to the calculation method, the indices are aggregated, which are determined by comparing one specific indicator using another indicator with a given constant value, which must be related to each other.

Step 5

Based on the comparison base, basic indices are distinguished that do not change the comparison base over several time intervals, and chain ones - in which the comparison base is constantly changing.

Step 6

In addition, the concept of an index is distinguished in different disciplines. In mathematics, this is a numerical or alphabetic mark with which mathematical formulas are marked to distinguish them from each other. In economics, this is an indicator of the stock exchange's performance, which is closely related to the change in the value of shares of the largest issuers of stock exchanges. Stock indices are considered indicators of the functioning of the economy in a particular sector of the national economy or the whole country.

Step 7

In the index, as in a conditional abstract value, its behavior in dynamics is important, which shows the state of the economy at a given stage of development of an industry or an entire country. The economy uses consumer price indices, an income index of the population, an index of wholesale prices, and territorial indices.

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