The Role of Hedonic Methods in Measuring Real GDP in the United States
David Wasshausen and
Brent Moulton ()
BEA Papers from Bureau of Economic Analysis
Accurate price indexes are crucial for preparing accurate estimates of real gross domestic product and corresponding productivity measures. The price index must capture price change for a ‘relevant’ market basket goods, while at the same time controlling for changes in characteristics and/or quality of these goods. Traditional price indexes (i.e. ‘matched model’) are well suited to capturing price change for goods that exhibit little or no quality change over time, however, for products whose characteristics and/or quality are changing rapidly (e.g. ICT goods), hedonic methods may be more suitable. This paper provides a brief history of hedonic methods employed by U.S. statistical agencies and specifically examines the role of hedonic price indexes in the U.S. National Income and Product Accounts. It also attempts to dispel some popular misconceptions about hedonic methods.
JEL-codes: E60 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bea:papers:0067
Access Statistics for this paper
More papers in BEA Papers from Bureau of Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Bryn Whitmire (). This e-mail address is bad, please contact .