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.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Haim R. Branisteanu who wrote (229216)3/20/2003 10:56:24 AM
From: Mike M2  Read Replies (1) of 436258
 
Haim, Much of the growth differential between the US and the rest of the world can be explained by the recent adaptation of statistical techniques unique to the United States. These changes corrupt the integrity of the data rendering comparisons with prior periods in the US less meaningful as well as comparisons with other nations. The BLS implemented most of the changes that the Boskin commission report recommended. The major finding of the report was that the CPI overstated product price inflation because it failed to account for quality improvements. To the extent that you reduce the " measured" rate of consumer price inflation you increase REAL GDP and productivity. Hedonic pricing of computers has been around since 1986 but did not have a substantial impact until 1995. to see the impact look at the Dept. of Commerce Survey of Current Business and compare compare current dollar spending on computers with chained dollars. To the best of my knowledge no other nation uses the hedonic deflator. The Bundesbank did a study and found that Germany's reported GDP and productivity growth would be higher by simply adopting the same statistical techniques of the US . The British and the Japanese had similar findings. The OECD also noted the impact of different statistical techniques. Starting in 1999 the US decided to no longer classify computer software as an expense but as an investment. In general, expenses do not enter the GDP account but capital spending does. Once again this practice is unique to the United States. I touched on the major issues of statistical changes but there are others as well. I happen to believe that these changes were done with the intent to overstate the strength of the economy but even if you reject that notion it is intellectually dishonest to not recognized the profound impact these changes have on the data. mike
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