The role of semiconductor inputs in IT hardware price decline: computers vs. communications
AbstractSharp 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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Bibliographic InfoPaper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2002-37.
Date of creation: 2002
Date of revision:
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- Mark Doms, 2003. "Communications equipment: what has happened to prices?," Working Papers in Applied Economic Theory 2003-15, Federal Reserve Bank of San Francisco.
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- Mark Doms & Chris Forman, 2003. "Prices for local area network equipment," Working Paper Series 2003-13, Federal Reserve Bank of San Francisco.
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