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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (5171)	6/6/2000 3:06:00 PM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 5676

Hedonic?! Some Mr Hedon spelling out his hedonic ideas? Don't your worry. My guess is Heinz picked hedonistic somewhere and dropped coupla letters in sleep... Yours truly opportunic DJ, jumping at the occasion.

To: Tommaso who wrote (5171)	6/6/2000 3:10:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 5676

T, 'hedonic pricing' is a type of value adjustment designed to reflect changes in the 'quality' of a product. a simple example how this works in the context of inflation data is a PC. if say the price of a PC rises by 10%, while the memory capacity and processor speed double, the BSL will record the price as having come down, as you get twice the computing power for only 10% more money. in the context of productivity and GDP data this is of course a hotly contested subject (recently several academics of note have released highly critical studies of the method), as it is highly questionable if a doubling of memory and processing speeds actually doubles productivity. also, in order to arrive at GDP growth estimates, dollar amounts invested in computer hardware are more or less simply multiplied with processing speed (i don't know the exact formula being used, i'm sure it can be found at the BLS web site...but it is quite remarkable that they managed to transform $8,6 bn. in real growth in computer investment into $148 bn. for the purposes of GDP growth calculation. obviously this is nonsense of the highest order of absurdity.) regards, hb