Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Growth of Network Computing: Quality Adjusted Price Changes for Network Servers

Contents:

Author Info

  • John Van Reenen

Abstract

In this paper we investigate the evolution of quality adjusted prices for servers motivated by two facts. First, the productivity acceleration in the US economy since the mid 1990s is closely linked to spread of information technology 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 the network server market. Like Pakes' (2003) analysis of the PC market, we show that our preferred version of the hedonic price index ("complete hybrid") fell much more rapidly than the standard "matched model" price index (the hedonic index fell on average by about 30% per annum compared to 17% p.a. for the matched model). This difference is mainly due to the selection bias in the standard matched model price index due to the exit of obsolete models which would have had the fastest price falls.

Download Info

If 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.
File URL: http://cep.lse.ac.uk/pubs/download/dp0702.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0702.

as in new window
Length:
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:cep:cepdps:dp0702

Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: hedonic prices; network servers; computers;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, American Economic Association, vol. 79(1), pages 198-210, March.
  2. Jerry A. Hausman & David A. Wise, 1985. "Social Experimentation," NBER Books, National Bureau of Economic Research, Inc, number haus85-1, July.
  3. Jerome Foncel & Marc Ivaldi, 2005. "Operating System Prices In The Home Pc Market," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 53(2), pages 265-297, 06.
  4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  5. Ernst R. Berndt & Zvi Griliches & Neal Rappaport, 1993. "Econometric Estimates of Prices Indexes for Personal Computers in the 1990s," NBER Working Papers 4549, National Bureau of Economic Research, Inc.
  6. Ariel Pakes, 2003. "A Reconsideration of Hedonic Price Indexes with an Application to PC's," American Economic Review, American Economic Association, American Economic Association, vol. 93(5), pages 1578-1596, December.
  7. van den Berg, Gerard J, 2005. "Revolutionary Effects of New Information Technologies," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5147, C.E.P.R. Discussion Papers.
  8. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, American Economic Association, vol. 91(1), pages 1-32, March.
  9. Ernst R. Berndt & Neal J. Rappaport, 2001. "Price and Quality of Desktop and Mobile Personal Computers: A Quarter-Century Historical Overview," American Economic Review, American Economic Association, American Economic Association, vol. 91(2), pages 268-273, May.
  10. Mulligen, Peter Hein van, 2003. "Alternative price indices for computers in the Netherlands using scanner data," GGDC Research Memorandum, Groningen Growth and Development Centre, University of Groningen 200365, Groningen Growth and Development Centre, University of Groningen.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cep:cepdps:dp0702. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.