Term:
Double deflation
Definition:
Double deflation is a method whereby gross value added is measured at constant prices by subtracting intermediate consumption at constant prices from output at constant prices; this method is feasible only for constant price estimates which are additive, such as those calculated using a Laspeyres’ formula (either fixed-base or for estimates expressed in the previous year’s prices).
Domain:
Economics & National Accounts
Source:
SNA 16.5