Definition: Time reversal test

Category: SNA 1993

The time reversal test requires that the index for the later period based on the earlier period should be the reciprocal of that for the earlier period based on the later period; one of the desirable features of the "Fisher Ideal" price and volume indexes is that they satisfy this test (unlike either the Paasche or Laspeyres indexes). http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA_1993_EN.pdf