The Growth of Network Computing: Quality-Adjusted Price Changes for Network Servers
AbstractThis article investigates the evolution of quality-adjusted prices for servers motivated by two facts. First, the recent productivity acceleration in the US is closely linked to the spread of IT of which networked computing is a large component. Second, the growth of network computing itself has been fostered by the rapid growth in the quality and quantity of server hardware and software. The preferred hedonic price index fell much more rapidly than the standard 'matched model' price index, mainly due to the selection bias in the standard model arising from the exit of obsolete models, which would have had the fastest price falls. Copyright 2006 Royal Economic Society.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 116 (2006)
Issue (Month): 509 (02)
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Other versions of this item:
- John Van Reenen, 2005. "The growth of network computing : quality adjusted price changes for network servers," LSE Research Online Documents on Economics 772, London School of Economics and Political Science, LSE Library.
- John Van Reenen, 2005. "The Growth of Network Computing: Quality Adjusted Price Changes for Network Servers," CEP Discussion Papers dp0702, Centre for Economic Performance, LSE.
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L4 - Industrial Organization - - Antitrust Issues and Policies
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