Base shiftingShifting of base period or reference period of the index is known as base shifting.
This can be done using the following relation as,
The process of combining two or more index numbers covering different bases into a single series is called splicing.
Suppose we have two series A and B, and if series A is spliced with B, then
If series B is spliced with A, then
|Years||Index Series A||Index Series B|
Splice the index series of A to B
Splice the index series of B to A
- Index series A spliced with index series B
- Index series B spliced with index series A
It is a technique used to make allowances for the effect of changing price values. It is used to measure the purchasing power of money.
It can also be found using the relation
|Income (in crores)||80||108||125||147||216||230|