> The BLS can simply say the price increase is due to enhancements. Hedonic regression actually quantifies the expected year-over-year price changes due to qua

> The BLS can simply say the price increase is due to enhancements. Hedonic regression actually quantifies the expected year-over-year price changes due to quality changes. It doesn’t give automakers carte blanche to increase prices, because a year-over-year price increase without quality increases commensurate with previous years will increase the residuals of the regression prediction for the current year. > Is this person going to feel wealthier than they did in 1990? Yes, because a 10 year old car in 2021 is still leaps and bounds better than a 1990 equivalent new car. Drive a few miles in a 2010 Civic (an entry level car), then drive a few miles in a 1990 Accord (a midrange car). You’ll be amazed at how much better the 10 year old Civic is in every aspect.