SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (4997)6/15/2001 10:32:16 PM
From: KyrosL  Read Replies (1) of 74559
 
I know all about hedonics and how it affects productivity and inflation. First I think the effect is not very much, maybe around a few tenths of a percent. Second I think that hedonics is a valid concept, although its application to computers may not be correct.

For example, you brought up health care. Life expectancy in this country has been steadily marching upwards. The main reason is better health care. At present we do not use hedonics in health care pricing. I think we should.

In the last five years the quality of newly introduced drugs has taken a tremendous leap forward. These drugs are in general very expensive and they are one of the main reasons of the hefty increase in health care inflation. But they evidently have improved considerably the quality of life of those that take them, compared to the cheaper, older drugs. How much is this worth?

Surgery has also improved tremendously, being much less invasive than in the past. Consequently, both the hospital stays are a lot shorter, and the chance of complications and death smaller. How much is this worth?

Only a few years ago an AIDS patient was condemned to a quick painful death. Today he can live a relatively long productive life thanks to drug cocktails that were introduced in the last few years. How much is this worth?

Kyros
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News