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To: LLCF who wrote (58643)	1/17/2001 2:06:28 PM
From: Moominoid	Read Replies (2) \| Respond to of 436258

They don't make any difference in your example if I understood it right. 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. Do you really think that one PC produced today is exactly the same amount of output as an IBM PC from 1981? Actually if you compute total factor productivity (TFP) and don't adjust computers used in production you will overstate the productivity gain. 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! David