4 ms·

My argument isn't that the CPI is misleading mismeasuring prices, but falling to amount for quality improvements in products. I'm not sure the MIT data disprove

• nabla9 8y ago
  When economists want to track quality changes they typically use hedonic models like hedonic regression or sales adjustment grids. In the U.S CPI calculation uses hedonic adjustment in many item categories, including smartphones. Bringing up quality when talking about wages does not seem relevant. Wages are important relative to the size fo the economy because they turn into consumption. CPI tracks that just fine. When trying to estimate economic growth quality may be more important.