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Politics : Ask Michael Burke

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To: mishedlo who wrote (87038)12/17/2000 10:25:00 AM
From: Mike M2  Read Replies (1) of 132070
 
Mis, here is a nice overview of the hedonic pricing hoax and how it overstates GDP & productivity growth . Scroll further down and you will read about how inflation is understated. One of the methods is the use of geometric weighting which presumes consumers will substitute lower priced alternatives as prices rise. It is difficult to substitute for energy though I suppose sweaters and bicycles help -g- Mike mwhodges.home.att.net
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