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Hedonic Price Indexes for Personal Computer Operating Systems and Productivity Suites

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Listed:
  • Alan G. White
  • Jaison R. Abel
  • Ernst R. Berndt
  • Cory W. Monroe

Abstract

Results from hedonic price regressions for personal computer operating systems and productivity suites advertised in PC World magazine by retail vendors during the time period 1984 to 2000 are reported. Among the quality attribute variables we use are new measures capturing the connectivity and compatibility of operating systems and the degree of data exchange among components of productivity suites. Average annual growth rates of quality-adjusted prices of personal computer operating systems range from -15 to -18 percent, while those for productivity suites generally range between -13 and -16 percent. These price declines are generally robust to estimation method and model specification.

Suggested Citation

  • Alan G. White & Jaison R. Abel & Ernst R. Berndt & Cory W. Monroe, 2005. "Hedonic Price Indexes for Personal Computer Operating Systems and Productivity Suites," Annals of Economics and Statistics, GENES, issue 79-80, pages 787-807.
    • Handle: RePEc:adr:anecst:y:2005:i:79-80:p:787-807
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    References listed on IDEAS

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    1. Ana M. Aizcorbe, 2003. "The stability of dummy variable price measures obtained from hedonic regressions," Finance and Economics Discussion Series 2003-05, Board of Governors of the Federal Reserve System (U.S.).
    2. Ana M. Aizcorbe & Carol Corrado & Mark Doms, 2003. "When do matched-model and hedonic techniques yield similar measures?," Working Paper Series 2003-14, Federal Reserve Bank of San Francisco.
    3. Jaison R. Abel & Ernst R. Berndt & Alan G. White, 2003. "Price Indexes for Microsoft's Personal Computer Software Products," NBER Working Papers 9966, National Bureau of Economic Research, Inc.
    4. Ernst R. Berndt & Zvi Griliches, 1993. "Price Indexes for Microcomputers: An Exploratory Study," NBER Chapters, in: Price Measurements and Their Uses, National Bureau of Economic Research, Inc.
    5. Murray Foss & Marylin Manser & Allan Young, 1993. "Price Measurements and Their Uses," NBER Books, National Bureau of Economic Research, Inc, number foss93-1, March.
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    Cited by:

    1. Robert C. Feenstra & Christopher R. Knittel, 2009. "Reassessing the US Quality Adjustment to Computer Prices: The Role of Durability and Changing Software," NBER Chapters, in: Price Index Concepts and Measurement, pages 129-160, National Bureau of Economic Research, Inc.
    2. Garcia-Swartz, Daniel D. & Garcia-Vicente, Florencia, 2015. "Network effects on the iPhone platform: An empirical examination," Telecommunications Policy, Elsevier, vol. 39(10), pages 877-895.
    3. Robert C. Feenstra & Christopher R. Knittel, 2009. "Re-Assessing the U.S. Quality Adjustment to Computer Prices: The Role of Durability and Changing Software," NBER Chapters,in: Price Index Concepts and Measurement, pages 129-160 National Bureau of Economic Research, Inc.
    4. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.
    5. Robert J. Gordon, 2006. "The Boskin Commission Report: A Retrospective One Decade Later," International Productivity Monitor, Centre for the Study of Living Standards, vol. 12, pages 7-22, Spring.
    6. Antonopoulos, Christos & Sakellaris, Plutarchos, 2009. "The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework," Information Economics and Policy, Elsevier, vol. 21(3), pages 171-191, August.
    7. W. Erwin Diewert, 2005. "Issues in the Measurement of Capital Services, Depreciation, Asset Price Changes, and Interest Rates," NBER Chapters, in: Measuring Capital in the New Economy, pages 479-556, National Bureau of Economic Research, Inc.
    8. Shane Greenstein & Sarit Markovich, 2012. "Pricing Experience Goods in Information Good Markets: The Case of eBusiness Service Providers," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(1), pages 119-139, February.

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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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