Divisia monetary aggregates index (Ofer Abarbanel online library)

In econometrics and official statistics, and particularly in banking, the Divisia monetary aggregates index is an index of money supply. It uses Divisia index methods.


There have been many attempts at weighting monetary components within a simple-sum aggregate. An index can rigorously apply microeconomic- and aggregation-theoretic foundations in the construction of monetary aggregates. That approach to monetary aggregation was derived and advocated by William A. Barnett (1980) and has led to the construction of monetary aggregates based on Diewert’s (1976) class of superlative quantity index numbers. The new aggregates are called the Divisia aggregates or Monetary Services Indexes. Salam Fayyad’s 1986 PhD dissertation did early research with those aggregates using U.S. data.


  • Barnett, William A. “The User Cost of Money”. Economics Letters(1978), 145-149.
  • Barnett, William A. “Economic Monetary Aggregates: An Application of Aggregation and Index Number Theory,” Journal of Econometrics14 (1980), 11-48.
  • Barnett, William A. and Apostolos Serletis. The Theory of Monetary Aggregation. Contributions to Economic Analysis 245. Amsterdam: North-Holland (2000).
  • Barnett, William A., Douglas Fisher, and Apostolos Serletis. “Consumer Theory and the Demand for Money”. Journal of Economic Literature30 (1992), 2086-2119.
  • Diewert, W. Erwin. “Exact and Superlative Index Numbers”. Journal of Econometrics4 (1976), 115-146.
  • Divisia, Francois. “L’Indice Monétaire et la Théorie de la Monnaie,” Revue D’Économie Politique39 (1925), 842-864.
  • Fayyad, Salam. “Monetary Asset Component Grouping and Aggregation: An Inquiry into the Definition of Money”. (Salam Fayyad’s Ph.D. thesis, University of Texas, 1986.)
  • International Monetary Fund. “Monetary and Financial Statistics Compilation Guide.” (2008), 183-184.
  • Journal of Econometrics, special issue on “Measurement with Theory,” Elsevier journal, Amsterdam, vol. 161, no. 1, March (2011).
  • Macroeconomic Dynamics, special issue on “Measurement with Theory,” Cambridge University Press journal, Cambridge, UK, vol 13, supplement 2 (2009).
  • Serletis, Apostolos. Archived 1 October 2006 at the Wayback Machine The Demand for Money: Theoretical and Empirical Approaches. Springer (2007).


Ofer Abarbanel online library