A new approach for quality-adjusting PPI microprocessors.

The Producer Price Index (PPI) for microprocessors has declined more slowly since 2010 than it did previously. This shift in microprocessors inflation occurred at the same time that a major manufacturer changed its pricing behavior. With these changes, we must explore a different approach to the mat...

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Detalles Bibliográficos
Publicado en:Monthly Labor Review pp. 1 - 33
Autores principales: Sawyer, Steven D., So, Alvin
Formato: Artículo
Publicado: US Department of Labor Dec2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2018
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      pub: US Department of Labor
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        atl: A new approach for quality-adjusting PPI microprocessors.
      aug:
        au:
          Sawyer, Steven D.
          So, Alvin
        affil:
          Economist in the Office of Prices and Living Conditions, U.S. Bureau of Labor Statistics
          Economist of the U.S. Bureau of Labor Statistics
      su:
        Wholesale price indexes
        Microprocessors
        Product quality
        Quality of service
        Statistical learning
      sug:
        subj:
          Wholesale price indexes
          Microprocessors
          Product quality
          Quality of service
          Statistical learning
      ab: The Producer Price Index (PPI) for microprocessors has declined more slowly since 2010 than it did previously. This shift in microprocessors inflation occurred at the same time that a major manufacturer changed its pricing behavior. With these changes, we must explore a different approach to the matched-model methodology that has been used for microprocessors. Hedonic quality adjustment can account for changes in the quality (characteristics) of products that cannot be captured with the use of a matched model. We look at the implementation of a time dummy hedonic model in a recent article and evaluate its suitability to PPI microprocessors. We then develop our own time dummy hedonic model for microprocessors. The choice of characteristics to include in a model is crucial, because the characteristics help determine the inflation rate the model estimates. We turn to statistical learning techniques to select characteristics for our model. We use our model to construct counterfactual PPI indexes for 2009-17 to determine what the effect of using our model would have been.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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