Quality Adjustment for Smartphones in Price Indices
The evolution of smartphones illustrates the quality adjustment problem in price indices. Over time, smartphones may have increased in price, but they have also gained significant new features and capabilities, such as larger screens, superior cameras, faster processors, GPS navigation, and internet access. When calculating a price index like the CPI, economists must differentiate the portion of the price increase attributable to these genuine quality enhancements from the portion that represents economy-wide inflation.
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Introduction to Macroeconomics Course
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Quality Adjustment for Smartphones in Price Indices
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