Pedersen index
Encyclopedia
The Pedersen index is a measure of electoral volatility in party
Political party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...

 systems. It was described by Mogens Pedersen in a paper published in 1979 entitled The Dynamics of European Party Systems: Changing Patterns of Electoral Volatility.

What the index means


"The net change within the electoral party system
Party system
A party system is a concept in comparative political science concerning the system of government by political parties in a democratic country. The idea is that political parties have basic similarities: they control the government, have a stable base of mass popular support, and create internal...

 resulting from individual vote transfers"


Construction of the Index

To calculate the 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...

, the percentage gains of the winning parties must be determined. The resulting index will be between 0 (no parties gained, and thus no parties lost either) and 100 (all the parties from the last election were reduced to zero votes), because for every gain there is an equal (in terms of percentage of votes) loss. In other words, the index is equal to the net
Net (mathematics)
In mathematics, more specifically in general topology and related branches, a net or Moore–Smith sequence is a generalization of the notion of a sequence. In essence, a sequence is a function with domain the natural numbers, and in the context of topology, the range of this function is...

 percentage of voters who changed their votes. ("Net percentage," because if the only change is a Party A voter switching to Party B, and a Party B voter switching to Party A, there is no net volatility.)
The index can also be constructed by summing the absolute values of all gains and all losses, and dividing
Division (mathematics)
right|thumb|200px|20 \div 4=5In mathematics, especially in elementary arithmetic, division is an arithmetic operation.Specifically, if c times b equals a, written:c \times b = a\,...

 this total by two.

Example

Assume that in the first election the Blue Party won 65%, the Orange Party won 25%, and the Fuchsia Party won 10%. Furthermore, assume that in the second election the Blue Party won 65%, the Orange Party won 15%, and the Fuchsia Party won 20%.
Election\PartyBlueOrangeFuchsia
1st 65% 25% 10%
2nd 65% 15% 20%
Gain
Gain
In electronics, gain is a measure of the ability of a circuit to increase the power or amplitude of a signal from the input to the output. It is usually defined as the mean ratio of the signal output of a system to the signal input of the same system. It may also be defined on a logarithmic scale,...

/Loss
Loss
Loss may refer to:*A negative difference between retail price and cost of production**Loss leader a deliberate commercial loss made in the expectation of recouping it by profitable sales of other lines...

0
10


The index would be equal to Blue gains (none) plus Orange's loss (10% since we do not consider sign differences) plus Fuchsia gains (10%). We then multiply it by 1/2 or divide by 2 for a total volatility of 10%.

If all three parties had disappeared in the next election, and been replaced by the Red Party (75%) and the Black Party (25%), the volatility would have been 100%: The first three lose all (100%) + the Red Party gaining 75% and the Black Party 25% since the previous election (when they both received no votes.) 100+100 = 200 -> divide by 2 = 100
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