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The role of semiconductor inputs in IT hardware price decline: computers vs. communications

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Author Info

  • Ana Aizcorbe
  • Kenneth Flamm
  • Anjum Khurshid

Abstract

Sharp declines in semiconductor prices are largely responsible for observed declines in computer prices. Although communications equipment also has a large semiconductor content, communications equipment prices do not fall nearly as fast as computer prices. This paper partly resolves the puzzle-first noted by Flamm(1989)-by demonstrating that prices for chips used in communications equipment do not fall nearly as fast as prices for those chips used in computers, and those differences are large enough to potentially explain all of the output price differences.

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File URL: http://www.federalreserve.gov/pubs/feds/2002/200237/200237abs.html
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File URL: http://www.federalreserve.gov/pubs/feds/2002/200237/200237pap.pdf
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Bibliographic Info

Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2002-37.

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Date of creation: 2002
Date of revision:
Handle: RePEc:fip:fedgfe:2002-37

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Related research

Keywords: Semiconductor industry ; Prices ; Computers;

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Cited by:
  1. 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.
  2. Doms, Mark & Forman, Chris, 2005. "Prices for local area network equipment," Information Economics and Policy, Elsevier, vol. 17(3), pages 365-388, July.
  3. Piatkowski, Marcin, 2004. "The Impact of ICT on Growth in Transition Economies," MPRA Paper 29399, University Library of Munich, Germany.
  4. Catherine L. Mann, 2003. "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," Policy Briefs PB03-11, Peterson Institute for International Economics.
  5. Mark Doms & Chris Forman, 2003. "Prices for local area network equipment," Working Paper Series 2003-13, Federal Reserve Bank of San Francisco.
  6. Mark Doms, 2003. "Communications equipment: what has happened to prices?," Working Paper Series 2003-15, Federal Reserve Bank of San Francisco.

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