Gerschenkron effect
Encyclopedia
The Gerschenkron effect was developed by Alexander Gerschenkron
, and claims that changing the base year for an index
determines the growth rate
of the index.
This description is from the OECD website http://www.oecd.org/faq/0,2583,en_2649_34357_1799281_1_1_1_1,00.html#13609247:
Alexander Gerschenkron
Alexander Gerschenkron was a Russian-born American Jewish economic historian and professor in Harvard, trained in the Austrian School of economics.Gerschenkron kept to his roots - in his economics, history and as a critic of Russian literature...
, and claims that changing the base year for an index
Index (economics)
In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from...
determines the growth rate
Compound annual growth rate
Compound annual growth rate is a business and investing specific term for the smoothed annualized gain of an investment over a given time period...
of the index.
This description is from the OECD website http://www.oecd.org/faq/0,2583,en_2649_34357_1799281_1_1_1_1,00.html#13609247: