4 ms·

Hedonics are in fact used in inflation data. More likely abused. It's really quite a small number of technology heavy things that have shot up in quality in g

Hedonics are in fact used in inflation data. More likely abused. It's really quite a small number of technology heavy things that have shot up in quality in great excess over the price increases. And what about declines in quality? Vegetables have a fraction of the mineral content they did decades ago. Many food items have substituted artificial ingredients for relatively healthy natural ingredients. Many services at hotels and on airliners that were once complementary are now charged for. A great many houses built in the last ten years will have to be torn down in less than 20 years they were made so poorly. There are many examples of declining quality and these adjustments are never made.

ewanmcteagle 18y ago
Do you know any data sources for these things? I'm doubtful of the mineral content claim unless the fraction you mention is something like 9/10. Housing stock that is on average lasting for much less time is also suspicious to me. The biggest reconciliation issue is that we're much much wealthier and healthier than we were decades ago so I'm not sure there are broad meaningful declines in the quality of most things.
- kingkongrevenge 18y ago
  You're confusing individual purchasing power with measures of inflation, which is about the value of money.