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Эконометрические Оценки Гедонических Индексов Цен На Персональные Компьютеры В России: Пример Рынка Г. Екатеринбурга
[Estimating Hedonic Price Indices for Personal Computers in Russia]

Author

Listed:
  • Parkhomenko, Alexander
  • Redkina, Anastasia

Abstract

Economist have noted for decades that Consumer Price Index (CPI) in the developed countries is overstating inflation by 0,5-2,0% per year. A significant part of such a bias is found to be caused by the presence of technology products and differentiated products in CPI. An increasing weight of these products in the Russian CPI may also lead to a substantial upward bias. Nowadays hedonic indices are believed to be the most efficient way to reduce the bias. Following Triplett we have developed the taxonomy of hedonic price indices within the “direct approach”. This first step is essential in constructing a detailed set of hedonic price indices. They can be used in two ways: to estimate the bias in CPI and to elaborate alternative official price indices for IT-products. We've estimated 11% fall of price for personal computers in 2005 with the usage of hedonic price indices, a 11-23% positive bias in price index for PC in Russia was also calculated. We also have found that Russian CPI could be upward biased by 0,12-0,23% per year due to new goods and quality change effects for PC.

Suggested Citation

  • Parkhomenko, Alexander & Redkina, Anastasia, 2006. "Эконометрические Оценки Гедонических Индексов Цен На Персональные Компьютеры В России: Пример Рынка Г. Екатеринбурга [Estimating Hedonic Price Indices for Personal Computers in Russia]," MPRA Paper 1506, University Library of Munich, Germany, revised 07 Nov 2006.
    • Handle: RePEc:pra:mprapa:1506
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    References listed on IDEAS

    as
    1. Ernst R. Berndt & Neal J. Rappaport, 2001. "Price and Quality of Desktop and Mobile Personal Computers: A Quarter-Century Historical Overview," American Economic Review, American Economic Association, vol. 91(2), pages 268-273, May.
    2. Allan Crawford, 1998. "Measurement biases in the Canadian CPI: An update," Bank of Canada Review, Bank of Canada, vol. 1998(Spring), pages 39-56.
    3. Ana M. Aizcorbe & Carol Corrado & Mark Doms, 2003. "When do matched-model and hedonic techniques yield similar measures?," Working Paper Series 2003-14, Federal Reserve Bank of San Francisco.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Hedonic; Price index; bias; CPI; PC; inflation; new economy;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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