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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: XBrit who wrote (16994)9/9/2000 6:39:21 PM
From: KyrosL  Read Replies (2) of 436258
 
The gist of the Barron's article is that hedonic pricing changes reported GDP by a tiny fraction: 0.3%.

Whatever one thinks of the practice, that kind of effect is rather insignificant. The Financial Times article (and James Grant) implies that the effect is a lot more significant, by prominently explaining the effect of hedonic pricing on computers, and conveniently omitting that computers represent only a small portion of the GDP and the CPI.
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