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The Mysterious Cross-Country Dispersion in Mobile Phone Price Trends

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  • David M. Byrne

Abstract

Mobile phones have been central to ICT innovation since the introduction of the smartphone and constant-quality prices are a barometer of their economic impact. Official consumer price indices (CPIs) indicate that impact differs wildly across countries: for the 2008–18 period, average annual rates of mobile phone inflation range from no change to a 25 per cent decline among 12 key countries examined in this paper. Although evidence indicates certain fundamental factors are at play, mis-measurement may lead the spread in rates to be overstated. Examination of methods employed in CPI calculation, including quality adjustment and index formulas, illuminates but does not resolve the mystery.

Suggested Citation

  • David M. Byrne, 2019. "The Mysterious Cross-Country Dispersion in Mobile Phone Price Trends," National Institute Economic Review, National Institute of Economic and Social Research, vol. 249(1), pages 39-46, August.
    • Handle: RePEc:sae:niesru:v:249:y:2019:i:1:p:r39-r46
    DOI: 10.1177/002795011924900113
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    More about this item

    Keywords

    price indexes; information and communications technology;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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