A hedonic model for Internet access service in the Consumer Price Index

Monthly Labor Review

Volumn 131, Issue 7, 2008, Pages 33-48

  Williams, Brendan ^a  

^a BUREAU OF LABOR STATISTICS   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 56749131546     PISSN: 00981818     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (32)

1. The BLS uses the term "experimental" to denote statistics produced outside the regular production systems used for "official" statistics. The experimental indexes are not considered to be of the same quality as the official indexes.
2. John B. Horrigan, "Home Broadband Adoption 2006," Pew Internet and American Life Project, May 28, 2006, on the Internet at www.pewinternet.org/pdfs/PIP_Broadband_trends2006.pdf.
3. Greg Stranger and Shane Greenstein, "Pricing at the On-ramp to the Internet: Price Indexes for ISP's during the 1990s," on the Internet at www.nber.org/~confer/2003/CRIWf03/greenstein.pdf.
4. Kam Yu and Marc Prud'homme, "Econometric Issues in Hedonic Price Indices: The Case of Internet Service Providers," Oct. 12, 2007, on the Internet at flash.lakeheadu.ca/%7Ekyu/Papers/ISP.pdf (visited July 15, 2008).
5. Ibid.
6. Shane Greenstein, "Is the Price Right? The CPI for Internet Access," Report for the Bureau of Economic Analysis, Dec. 20, 2002, on the Internet at www.kellogg.northwestern.edu/faculty/greenstein/ images/htm/Research/WP/Is_the_price_right.pdf.
7. Ibid., p. 9.
8. See, for example, Jerry A. Hausman, J. Gregory Sidak, and Hal J. Singer, "Cable Modems and DSL: Broadband Internet Access for Residential Customers," Papers and Proceedings of the Hundred Thirteenth Annual Meeting of the American Economic Association, American Economic Review, May 2001, pp. 302-07.
9. Greenstein, "Is the Price Right?" p. 20.
10. Ibid., p. 14.
11. Hausman, Sidak, and Singer, "Cable Modems and DSL."
12. Ibid., p. 340.
13. John B. Horrigan and Lee Rainie, "The Broadband Difference: How online American's behavior changes with high-speed Internet connection at home," Pew Internet and American Life Project, on the Internet at www.pewinternet.org/pdfs/PIP_Broadband_Report.pdf.
14. Tom Downes and Shane Greenstein, "Universal Access and Local Internet Markets in the U.S.," Research Policy, September 2002, pp. 1035-52.
15. "Does the Residential Broadband Market Need Fixing?" (Congressional Budget Office, December 2003), on the Internet at www.cbo.gov/ftpdocs/48xx/doc4868/12-03-Broadband.pdf.
16. Nestor M. Arguea, Cheng Hsiao, and Grant A. Taylor, "Estimating Consumer Preferences Using Market Data - an Application to U.S. Automobile Demand," Journal of Applied Econometrics, January-March 1994, pp. 1-18.
17. Sherwin Rosen, "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, January-February 1974, pp. 34-55.
18. Jack Triplett, Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products, STI Working Paper 2004/09, Oct. 8, 2004, on the Internet at www.oecd.org/dataoecd/37/31/33789552.pdf; see especially pp. 185-86.
19. Maureen L. Cropper, Leland B. Deck, and Kenneth E. McConnell, "On the Choice of Functional Form for Hedonic Price Functions," Review of Economics and Statistics, November 1988), pp. 668-75.
20. In cases where a transformation parameter equals 0, the logarithmic transformation is used instead of the usual Box-Cox transformation by that parameter.
21. Triplett, Handbook on Hedonic Indexes, p. 182.
22. Cropper, Deck, and McConnell, "On the Choice of Functional Form," p. 668.
23. Ibid., p. 671.
24. Horrigan, "Home Broadband," p. ii.
25. Yu and Prudhomme, "Econometric Issues in Hedonic Price Indices," also used these two criteria to help select functional form.
26. John J. Spitzer, "A Fast and Efficient Algorithm for the Estimation of Parameters in Models with the Box-and-Cox Transformation," Journal of the American Statistical Association, December 1982, pp. 760-66; see especially p. 760.
27. For more on these imputation methods, see BLS Handbook of Methods, June 2007, chapter 17, "The Consumer Price Index," on the Internet at www.bls.gov/opub/hom/pdf/homch17.pdf.
28. Triplett, Handbook on Hedonic Indexes, p. 26.
29. Paul R. Liegey and Nicole Shepler, "Adjusting VCR prices for quality change: a study using hedonic methods," Monthly Labor Review, September 1999, pp. 22-37; on the Internet at www.bls.gov/opub/mlr/ 1999/09/art3full.pdf.
30. Craig Brown and Anya Stockburger, "Item replacement and quality change in apparel price indexes," Monthly Labor Review, December 2006, pp. 35-45; on the Internet at www.bls.gov/opub/mlr/ 2006/12/art3full.pdf.
31. t.
32. Ibid.