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A computer software price index using scanner data

Author

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  • Marc Prud’homme
  • Dimitri Sanga
  • Kam Yu

Abstract

. In the last 20 years, the expenditure share of prepackaged software in the national output has grown. The large number of characteristics in computer software make hedonic regression techniques impractical for purposes of controlling for quality changes. In this study, matched model price indices are constructed using monthly scanner data on prices and unit values for various prepackaged computer software titles and categories sold in Canada from January 1996 to June 2000. Quality differences are controlled for by applying the maximum overlap method. Results show that prices declined during the period studied at an average annual rate of 5.9%. JEL classification: C43, L86 Un indice de prix de logiciel à partir de données scanographiques. Au cours des derniers 20 ans, la portion des dépenses pour les logiciels dans la dépense nationale s’est accrue. Le vaste éventail de caractéristiques des logiciels rend l’utilisation des techniques de régression hédonique inutilisable à cause de leur incapacitéà normaliser les changements de qualité. Dans ce texte, on construit des indices de prix mensuels à partir de données scanographiques sur les prix et valeurs unitaires pour différentes familles de logiciels vendus au Canada entre janvier 1996 et juin 2000. Les différences de qualité sont contrôlées en utilisant la méthode du maximum de recoupement. Les résultats indiquent que les prix ont chuté au cours de la période étudiée à un rythme annuel de 5.9%

Suggested Citation

  • Marc Prud’homme & Dimitri Sanga & Kam Yu, 2005. "A computer software price index using scanner data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 999-1017, August.
    • Handle: RePEc:wly:canjec:v:38:y:2005:i:3:p:999-1017
    DOI: 10.1111/j.0008-4085.2005.00313.x
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    References listed on IDEAS

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    Cited by:

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    2. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013. "Is the Information Technology Revolution Over?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-36, Spring.
    3. Sutirtha Bandyopadhyay & Bharat Ramaswami, 2022. "The representative agent bias in cost of living indices," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 155-178, January.
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    5. Grace Kite, 2012. "The Impact of Information Technology Outsourcing on Productivity and Output: New Evidence from India," Working Papers 173, Department of Economics, SOAS University of London, UK.
    6. Wei Dai & Kam Yu, 2019. "Contestability in the Digital Music Player Market," Journal of Industry, Competition and Trade, Springer, vol. 19(2), pages 293-311, June.
    7. Adam Copeland, 2013. "Seasonality, consumer heterogeneity and price indexes: the case of prepackaged software," Journal of Productivity Analysis, Springer, vol. 39(1), pages 47-59, February.

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    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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