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The U.S. BLS differentiates between "hedonic" and other quality adjustments: https://www.bls.gov/cpi/quality-adjustment/questions-and-answers.htm https://www.b
by floxy 5y ago
The U.S. BLS differentiates between "hedonic" and other quality adjustments:
https://www.bls.gov/cpi/quality-adjustment/questions-and-answers.htm https://www.bls.gov/cpi/quality-adjustment/questions-and-ans...
3. What items in the CPI are hedonically adjusted?
The CPI uses hedonic quality adjustments in item categories that tend to experience a high degree of quality change either due to seasonal changes, as in apparel items, or because of innovative improvements and technological changes, as in consumer appliances and electronics.
New and used car purchases (TA011 and TA021) use "Cost based adjustments"
https://www.bls.gov/cpi/quality-adjustment/home.htm https://www.bls.gov/cpi/quality-adjustment/home.htm
- MontyCarloHall 5y agoWhat is the difference in methodology between “hedonic” and “cost based” adjustments? The site doesn’t say. For all intents and purposes (i.e. going by the Wikipedia/intro to macroeconomics definition), any form of accounting for changing quality of goods in inflation indices is a “hedonic adjustment.” The BLS distinguishing between “hedonic adjustments” and “cost based adjustments” (the latter of which they do not define) seems to be something specific to them. And the PDF actually describing their methodology for adjusting car prices sure reads like textbook hedonic adjustment to me.
- floxy 5y agoYep, sorry I don't have more information.