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Prices for Communications Equipment: Rewriting the Record

Author

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  • Byrne, David M.

    () (Board of Governors of the Federal Reserve System (U.S.))

  • Corrado, Carol

    (The Conference Board)

Abstract

Communication equipment plays as large a role in high-tech investment as computers, yet prices for communication equipment have not been studied as extensively as prices for computers and electronic components. Prices for satellites, cell phones, and the ground stations for these systems--important components of a nation's communications infrastructure--are difficult to locate in official statistics. This paper develops new price measures for 16 types of communications equipment from 1963 to 2009. Indexes for some (e.g., cellular phone systems) experience declines of 15-20 percent per year, similar to the decline in quality-adjusted prices for computers, and suggest that advances in wireless communications technology have been very rapid. All told, our price index for domestic production falls 4.8 percent per year on average over the time period we study and 9.8 percent per year on average since 1985--nearly 10 percentage points faster than the official U.S. producer price index introduced in that year.

Suggested Citation

  • Byrne, David M. & Corrado, Carol, 2015. "Prices for Communications Equipment: Rewriting the Record," Finance and Economics Discussion Series 2015-69, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgfe:2015-69
    DOI: 10.17016/FEDS.2015.069
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    File URL: http://dx.doi.org/10.17016/FEDS.2015.069
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    References listed on IDEAS

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    1. repec:ucp:bknber:9780226304557 is not listed on IDEAS
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    3. Charles Gilbert & Kimberly Bayard, 2005. "Industrial production and capacity utilization: the 2004 annual revision," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Win, pages 9-25.
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    8. Carol Corrado, 2003. "Industrial production and capacity utilization: the 2002 historical and annual revision," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Apr, pages 151-176.
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    Cited by:

    1. repec:nsr:escoed:escoe-dp-2017-03 is not listed on IDEAS
    2. Nadim Ahmad & Paul Schreyer, 2016. "Are GDP and Productivity Up to the Challenges of the Digital Economy?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 4-27, Spring.
    3. Leonard Nakamura & Jon Samuels & Rachel Soloveichik, 2017. "Measuring the Free Digital Economy within the GDP and Productivity Accounts," BEA Working Papers 0146, Bureau of Economic Analysis.
    4. 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.
    5. Leonard Nakamura & Jon Samuels & Rachel Soloveichik, 2016. "Valuing Free Media in GDP: An Experimental Approach," BEA Working Papers 0133, Bureau of Economic Analysis.
    6. David Byrne & Brian K. Kovak & Ryan Michaels, 2013. "Price and Quality Dispersion in an Offshoring Market: Evidence from Semiconductor Production Services," NBER Working Papers 19637, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ICT; communications equipment; price measurement; technical change; wireless technology; communications technology; communications equipment industry;

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