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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Moominoid who wrote (58699)1/17/2001 2:35:36 PM
From: LLCF  Read Replies (1) of 436258
 
<It's true that a lot of the recent measured productivity growth in the US is because of productivity improvements in the production of computers and the quantity of computers produced is quality adjusted.>

Yes, hence double counting:

<Do you really think that one PC produced today is exactly the same amount of output as an IBM PC from 1981? >

Of course not, but no one needs to figure this out or 'adjust it' because raw sales numbers would already count it.

<But in your example more computers were used for no output gain and so TFP would fall and using quality adjustments it would have fallen even more!>

And yet the government is adjusting the computer sale to make Dell look more productive where mine gets written off over years...good point this will indeed be interesting when it moves in reverse!

DAK
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