Measuring the growth from better and better goods
By: Mark Bils.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10606; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10606.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Durable goods, Consumer -- Prices.; Inflation (Finance)
Description: "Using micro CPI data, I show that much of inflation for durable goods since 1988 reflects, not increases in price for a given set of products, but rather shifts to a newer set of product models that display higher prices.  I examine how these price differences should be divided between quality growth and price inflation based on how consumer spending responds to product substitutions.  For all goods examined (cars, other vehicles, televisions, and other consumer electronics), buying shifts to the newer models despite their higher prices.  This suggests that quality growth for durables has averaged at least 5.8% per year, more than double the rate implied by CPI measurement"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/11/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.