The Role of Hedonic Methods in Measuring Real GDP in the United States
AbstractAccurate price indexes are crucial for preparing accurate estimates of real gross domestic product and corresponding productivity measures. The price index must capture price change for a ‘relevant’ market basket goods, while at the same time controlling for changes in characteristics and/or quality of these goods. Traditional price indexes (i.e. ‘matched model’) are well suited to capturing price change for goods that exhibit little or no quality change over time, however, for products whose characteristics and/or quality are changing rapidly (e.g. ICT goods), hedonic methods may be more suitable. This paper provides a brief history of hedonic methods employed by U.S. statistical agencies and specifically examines the role of hedonic price indexes in the U.S. National Income and Product Accounts. It also attempts to dispel some popular misconceptions about hedonic methods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bureau of Economic Analysis in its series BEA Papers with number 0067.
Date of creation: Oct 2006
Date of revision:
Find related papers by JEL classification:
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Katharine G. Abraham & John S. Greenlees & Brent R. Moulton, 1998. "Working to Improve the Consumer Price Index," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 27-36, Winter.
- Robert C. Feenstra, 1995.
"Exact Hedonic Price Indexes,"
NBER Working Papers
5061, National Bureau of Economic Research, Inc.
- Robert P. Parker & Bruce T. Grimm, 2000. "Recognition of Business and Government Expenditures for Software as Investment: Methodology and Quantitative Impacts, 1959-98," BEA Papers 0002, Bureau of Economic Analysis.
- Randolph, William C, 1988. "Housing Depreciation and Aging Bias in the Consumer Price Index," Journal of Business & Economic Statistics, American Statistical Association, vol. 6(3), pages 359-71, July.
- Paul E. Pieper, 1991. "The Measurement of Construction Prices: Retrospect and Prospect," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 239-272 National Bureau of Economic Research, Inc.
- Robert Gillingham, 1975. "Place to Place Rent Comparisons," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 1, pages 153-178 National Bureau of Economic Research, Inc.
- Mick Silver & Saeed Heravi, 2003. "The Measurement of Quality-Adjusted Price Changes," NBER Chapters, in: Scanner Data and Price Indexes, pages 277-316 National Bureau of Economic Research, Inc.
- 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.).
- Bulent Unel, .
"Analyzing Skilled and Unskilled Labor Efficiencies in the US,"
Departmental Working Papers
2008-04, Department of Economics, Louisiana State University.
- Unel, Bulent, 2010. "Analyzing skilled and unskilled labor efficiencies in the US," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 957-967, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Bernstein).
If references are entirely missing, you can add them using this form.