MEASURING THE WELFARE GAIN FROM PERSONAL COMPUTERS.

The welfare gain to consumers from the introduction of personal computers (PCs) is estimated. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the consu...

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Publicado en:Economic Inquiry Vol. 51; no. 1; pp. 336 - 348
Autores principales: GREENWOOD, JEREMY, KOPECKY, KAREN A.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2013
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Acceso en línea:Ver este registro en EBSCOhost
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          GREENWOOD, JEREMY
          KOPECKY, KAREN A.
        affil:
          GreENwood: Professor, DepartmENt of Economics, University of PENnsylvania, Philadelphia, PA 19104 ‐ 6297. Phone 1 ‐ 215 ‐ 898 ‐ 1505, Fax 1 ‐ 215 ‐ 746 ‐ 2947.
          Kopecky: Research Economist, Research DepartmENt, Federal Reserve Bank of Atlanta, 1000 Peachtree St. NE, Atlanta, GA 30309 ‐ 4470. Phone 1 ‐ 404 ‐ 498 ‐ 8974, Fax 1 ‐ 404 ‐ 498 ‐ 8956, E ‐ mail
      su:
        United States
        United States. Bureau of Economic Analysis
        United States. Bureau of Labor Statistics
        Personal computers
        Consumption (Economics)
        Consumer behavior
        Consumers
        Utility theory
        Consumer price indexes
        Gross domestic product
      sug:
        subj:
          Personal computers
          Consumption (Economics)
          Consumer behavior
          Consumers
          United States
          United States. Bureau of Economic Analysis
          United States. Bureau of Labor Statistics
          Electronic Computer Manufacturing
          Computer and peripheral equipment manufacturing
          Administration of General Economic Programs
          Utility theory
          Consumer price indexes
          Gross domestic product
      ab: The welfare gain to consumers from the introduction of personal computers (PCs) is estimated. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero. This implies that the good will not be consumed at a high enough price. It also bounds the consumer surplus derived from the product. The model is calibrated/estimated using standard national income and product account data. The welfare gain from the introduction of PCs is 2%-3% of consumption expenditure.
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