Search Tools and Maps


  • Google

    WWW Market Power

  • Locations of visitors to this page

email

Counters


  • eXTReMe Tracker

« Death of a Professor | Main | We Will Never Run Out of Oil: A Continuing Series »

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8345158c869e200d8345b74b269e2

Listed below are links to weblogs that reference How Far Have Computers Come?:

» SPEAKING OF THOSE DESKTOP COMPUTERS. from Cold Spring Shops
At Market Power, some nostalgia for those good old days ... [Read More]

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

KipEsquire

And even if a home computer is included in a "basket of goods" used to measure inflation, only the price drop is captured, not the increase in power or the longer useful life (which you overlooked). Ditto for televisions, cars, cell phones, almost any major appliance, even houses themselves.

Retail inflation is probably the most worthless economic statistic ever conceived.

Phil Miller

There was a flap several years ago when inflation statistics were being adjusted to take account of the fact when consumers are faced with higher prices, they respond in part by switching between goods. As I understand it, the old inflation stats took into account the fact that price changes alter consumer purchasing power, but did little to correct for how consumers react to the changes. But it's awful difficult, statistically, to control for quality differences.

spencer

Actually, computers are in the CPI and
they use Hedonic pricing to incorporate
both price and quality changes into the
index.

spencer

Actually, computers are in the CPI and
they use Hedonic pricing to incorporate
both price and quality changes into the
index.

spencer

Computers are included in the CPI basket of goods.

Moreover, the BLS uses hedonic pricing to adjust the
computer prices for both quality and prices.

The comments to this entry are closed.

My Photo

Categories