Measuring the Welfare Gain from Personal Computers: A Macroeconomic Approach
Jeremy Greenwood and
Karen Kopecky ()
No 13592, NBER Working Papers from National Bureau of Economic Research, Inc
The welfare gain to consumers from the introduction of personal computers is estimated here. 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 won't 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 personal computers is in the range of 2 to 3 percent of consumption expenditure.
JEL-codes: E01 E21 O33 O47 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Note: EFG PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published as JEREMY GREENWOOD & KAREN A. KOPECKY, 2013. "MEASURING THE WELFARE GAIN FROM PERSONAL COMPUTERS," Economic Inquiry, vol 51(1), pages 336-347.
Downloads: (external link)
Working Paper: Measuring the welfare gain from personal computers: a macroeconomic approach (2011)
Working Paper: Measuring the Welfare Gain from Personal Computers: A Macroeconomic Approach (2011)
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:nbr:nberwo:13592
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().