Composition of material price indices for operation and maintenance, Navy budgetary account
Gorman, Paul Richard
Sovereign, Michael G.
Buttinger, James D.
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A price index for the Operation and Maintenance, Navy budgetary account is developed for the period 1965 to 1975. Component price indices are presented for four object classifications of the account. These indices are compared with price indices used by the Congressional Budget Office in their "Five Year Budget Projections" for current services. Pending further research into the construction of an improved O&M,N index, it is shown that those indices used by the Congressional Budget Office have substantially underestimated the effects of inflation upon the O&M,N account. It is recommended that the developed indices be used for the Congressional Budget Office analysis of the Operation and Maintenance, Navy account.
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