The GDP deflator formula includes the value of all final goods, including exports ... The GDP price deflator is a more comprehensive inflation measure than the Consumer Price Index (CPI), which ...

That was then divided by total exports. In the below formula "ε" represents price elasticity for import demand and was set at 4. Meanwhile, "φ" represents the elasticity of import prices and was ...

The index solely measures what is actually happening. The formula which applies in this article is: Balasssa index = (export value of good y from the Netherlands/total Dutch export value) divided by ...