<p>No, you want to re-scale proportionally, so you want to solve the equation <span class="math-container">$115.9x=100$</span>, so that <span class="math-container">$x=100/115.9$</span> and then multiply each value by <span class="math-container">$x$</span>. The value for 1997, for example, should be 86.3 (after rounding).</p>

CC BY-SA 4.0
2019-05-07T16:58:47.170Z
2019-05-07T16:58:47.170Z
Regio
<p>I am given the following data for GDP deflator:</p>

<p>1997: 100.0</p>

<p>1998: 100.8</p>

<p>1999: 102.5</p>

<p>2000: 109.9</p>

<p>2001: 112.5</p>

<p>2002: 115.9</p>

<p>2003: 119.7</p>

<p>2004: 122.1</p>

<p>2005: 126.5</p>

<p>...and so on.</p>

<p>Currently, 1997 is the base year. However, I would like to rescale this index so that 2002 is the base year. Could I do this simply by solving 115.9-x=100 (x=15.9) and then subtracting 15.9 from each annual value? That is, would the following index be equivalent:</p>

<p>1997: 84.1</p>

<p>1998: 84.9</p>

<p>1999: 86.6</p>

<p>2000: 94.0</p>

<p>2001: 96.6</p>

<p>2002: 100.0</p>

<p>2003: 103.8</p>

<p>...and so on.</p>

<macroeconomics><inflation><gdp><price-index>
How can I adjust the base year of this price index?
leecarvallo
# How can I adjust the base year of this price index?

(Asked by: username_0 on 2019-05-05)

I am given the following data for GDP deflator:

1997: 100.0

1998: 100.8

1999: 102.5

2000: 109.9

2001: 112.5

2002: 115.9

2003: 119.7

2004: 122.1

2005: 126.5

...and so on.

Currently, 1997 is the base year. However, I would like to rescale this index so that 2002 is the base year. Could I do this simply by solving 115.9-x=100 (x=15.9) and then subtracting 15.9 from each annual value? That is, would the following index be equivalent:

1997: 84.1

1998: 84.9

1999: 86.6

2000: 94.0

2001: 96.6

2002: 100.0

2003: 103.8

...and so on.

**Tags:** macroeconomics, inflation, gdp, price-index

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## 1 answers

### Answer by username_1 on 2019-05-07. Score: 1

No, you want to re-scale proportionally, so you want to solve the equation $115.9x=100$, so that $x=100/115.9$ and then multiply each value by $x$. The value for 1997, for example, should be 86.3 (after rounding).


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