the final quantities. When applied to bundles of individual consumers, a Laspeyres index of 1 would state that an agent in the current period can afford to buy the same bundle as she consumed in the previous period, given that income has not changed; a Paasche index of 1 would state that an agent could have consumed the same bundle in the base period as she is consuming in the current period, given that income has not changed. Hence, one may think of the Paasche index as one where the numeraire is the bundle of goods using current year prices and current year quantities. Similarly, the Laspeyres index can be thought of as a price index taking the bundle of goods using current prices and base period quantities as the numeraire. The Laspeyres index tends to overstate inflation (in a cost of living framework), while the Paasche index tends to understate it, because the indices do not account for the fact that consumers typically react to price changes by changing the quantities that they buy. For example, if prices go up for good then, ceteris paribus, quantities demanded of that good should go down. Lowe indices Many price indices are calculated with the Lowe index procedure. In a Lowe price index, the expenditure or quantity weights associated with each item are not drawn from each indexed period. Usually they are inherited from an earlier period, which is sometimes called the expenditure base period. Generally the expenditure weights are updated occasionally, but the prices are updated in every period. Prices are drawn from the time period the index is supposed to summarize." Lowe indexes are named for economist Joseph Lowe. Most CPIs and employment cost indices from Statistics Canada, the U.S. Bureau of Labor Statistics, and many other national statistics offices are Lowe indices. Lowe indexes are sometimes called a "modified Laspeyres index", where the principal modification is to draw quantity weights less frequently than every period. For a consumer price index, the weights on various kinds of expenditure are generally computed from surveys of households asking about their budgets, and such surveys are less frequent than price data collection is. Another phrasings is that Laspeyres and Paasche indexes are special cases of Lowe indexes in which all price and quantity data are updated every period. Comparisons of output between countries often use Lowe quantity indexes. The Geary-Khamis method used in