Seasonality, consumer heterogeneity and price indexes: the case of prepackaged software
AbstractThis paper measures constant-quality price change for prepackaged software in the US using detailed and comprehensive scanner data. Because there is a large sales surge over the winter-holiday, it is important to account for seasonal variation. Using a novel approach to constructing a seasonally-adjusted cost-of-living price index that explicitly accounts for consumer heterogeneity, I find that from 1997 to 2003 constant-quality software prices declined at an average 15.9% at an annual rate. As a point of comparison, the Bureau of Labor Statistics reports average annual price declines of only 7.7% for prepackaged software. Copyright Springer Science+Business Media, LLC 2013
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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 39 (2013)
Issue (Month): 1 (February)
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Web page: http://www.springerlink.com/link.asp?id=100296
Seasonal adjustment; Software prices; Heterogeneity; Price indexes; C43; E31; L86;
Find related papers by JEL classification:
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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- David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013.
"Is the information technology revolution over?,"
Finance and Economics Discussion Series
2013-36, Board of Governors of the Federal Reserve System (U.S.).
- Daniel Melser & Iqbal A. Syed, 2013. "Prices over the Product Life Cycle: Implications for Quality-Adjustment and the Measurement of Inflation," Discussion Papers 2013-26, School of Economics, The University of New South Wales.
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