Bean and Stine Type C or Rothwell Indices

The Bean and Stine Type C (1924; 31) or Rothwell (1958; 72) index makes use of seasonal baskets in the base year, denoted as the vectors q^0,m for the months m = 1,2,…,12. The index also makes use of a vector of base year unit value prices, p⁰ º [p₁⁰,…,p₅⁰] where the nth price in this vector is defined as:

;

The Rothwell price index for month m in year t can now be defined as follows:

; m = 1,…,12.

To make the different series more comparable, the normalized Rothwell index P_NR is introduced; this index is simply equal to the original Rothwell index divided by its first observation.