3 ms·
> What the hedonic adjustment ignores the fact that many of the things people need to live are bought for utility, now how many added features they might have.
by ahahahahah 5y ago
> What the hedonic adjustment ignores the fact that many of the things people need to live are bought for utility, now how many added features they might have.
That's true.
> He is now going to have to buy 10% more toilet paper despite CPI reflecting no inflation in toilet paper prices
This is 100% wrong. I don't think anyone should be surprised that professionals who have thought about these things a lot were long aware that a hedonic adjustment is not appropriate for all things. Toiler paper does not get any quality adjustment (hedonic or otherwise) in the CPI calculation.
See https://www.bls.gov/cpi/quality-adjustment/ https://www.bls.gov/cpi/quality-adjustment/