History of Making Price Index Numbers

This chapter traces the history of price index numbers, beginning with early attempts in the sixteenth century and covering key figures such as Bodin, Dutot, Fleetwood, Jevons, and Laspeyres. It highlights how the concept of measuring price changes evolved over time, from the initial empirical efforts by Jean Bodin, who analyzed price fluctuations in sixteenth-century France, to more systematic approaches by later economists. Laspeyres and Paasche are so well-known that their names have become synonymous with price indices. However, this chapter points out that many others have also made significant contributions to this field. It also discusses the theoretical debates and controversies that shaped the development of price index number theory, such as the arguments between Jevons and Laspeyres. The chapter concludes by noting the shift toward more sophisticated methods in the late nineteenth and early twentieth centuries, including the axiomatic and economic approaches that form the foundation of modern index number theory.