base period

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Base period

A particular period of time used for comparative purposes when measuring economic data.

Base Period

The period of time against which an index is measured. For example, suppose the base period is 2001 and the initial value of an index is 100. If the index is 150 in 2009, it means that the value of the index is 50% higher in 2009 than it was in 2001. It is also called the reference period.

base period

The time or period of time on which an index is based. Usually, the index is established at a value of 10 or 100 in the base year. The consumer price index of 177 in early 2002 indicated that consumer prices were 77% higher than during the base period of 1982-84. The Standard & Poor's 500 Stock Index of 1300 in early March 2002 indicated that, on average, a portfolio of blue chip stocks with a market value of $10 during the period 1941-43 (the base period) had a market value of $1,300 in early 2002. The portfolio of stocks making up the S&P 500 underwent substantial changes during the intervening years.

base period

The point in time that serves as a reference for calculating financial and economic data.The base period value is usually set at 1.0 or 100, called the benchmark, for purposes of comparison,and then all other periods are either greater or less than the benchmark.

References in periodicals archive ?
As a reasonableness check, the factors that affected the business during the base period need to be examined, to ensure that they support the estimates.
Chain-type indexes attempt to address one of the most basic problems in measuring real output and prices: The choice of the base period with which all other periods are compared.
An individual's weekly benefit amount will be computed as 1/26 of the average total wages earned in the two highest quarters of his or her base period, instead of 1/26 of high-quarter wages earned in the base period.
The qualified organization base period amount is the sum of the "minimum basic research amount" and the "maintenance-of-effort amount" [Secs.
Overview of General Principles Concerning Base Period and Ceiling Amounts
Because of the averaging of distributions over a five-year base period, a foundation may want to reduce its current-year distributions to make it easier to qualify for the reduced rate in a subsequent year.
1 million, which includes the value of a three-year base period and two one-year options.
The base period for the calculation of benefits is revised.
The formula for computing benefits in amounts below the maximum weekly benefit amount changed from 1/52 of the two highest-earnings quarters in the individual's base period to 1/26 of high-quarter wages paid in the base period.
As an example, he asked whether it made a difference if the target paid dividends during the base period, but paid no dividends in the taxable year elected by the new parent as the year for the exclusion.