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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Ilaine who wrote (66603)2/10/2001 1:31:33 PM
From: flatsville  Read Replies (2) of 436258
 
No, my point is that you told Magner not to blame the BLS for using hedonic adjustment to pricing, it was the Senate Finance Committee who "let the hedonic genie out of the bottle" and that is not an accurate statement of facts. The BLS has been using hedonic adjustment to pricing and exploring the further use of hedonic adjustment to pricing since the late 1980's - early 1990's.

By passing the reco to the full Congress in the form of a bill (then passed and signed) the use of hedonics was formalized and codified where before it was not uniform and discretionary (as it was one method among five used by BLS among many. The other four containing an "upward" bias.)

That act, the formalization and codification, let the genie out of the bottle.

Your own citation of this--

The advisory commission report did not contain an explicit recommendation concerning the use of hedonic regressions, but the commission members later emphasized their support for increased use of this approach to quality adjustment.14 This is, in fact, a critical element of BLS current practice and future plans. For several years, hedonic quality adjustments have been used in the CPI apparel and rent indexes.

which clearly indicates the intent of the entire exercise from inception (the establishment of the Commission by the Senate Finance Committee) to execution (bill) should provide a clue. I'm not surprised that the advisory commission report didn't contain an explicit recommendation concerning the use of hedonic regressions. A good screw job isn't advertised as such up front for all the world to see...that much I have learned from many years in politics.
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