They recently started using computer price
indices that reflected the costless quality improvements being made in computers'.
Alcaly notes the faster rate of decline in semiconductor and computer prices
after 1995 and is quick to credit part of the surge in computer investment--and productivity growth--to this source.
The large declines in the computer price
index obviously reflect the underlying deflation methodologies, but the improved performance/price ratio of IT assets is a real phenomenon that provides a strong incentive for firms to substitute between production inputs and invest in the relatively cheap IT assets.
 In the US, the official NIPA computer price
index is a constant-quality series constructed from so-called 'hedonic' price regressions.
"Lower computer prices
and more accessibility to computers in libraries and schools contributed to the growth in computer and Internet access among blacks and Hispanics," said Kelly Levy, associate administrator for the NTIA.
as part of its efforts to reorganize production of notebook personal computers amid a global decline in personal computer prices
and their sluggish sales.
Now, both large and small government agencies can get the computer prices
negotiated under that large contract, which could result in major price savings for smaller government agencies that might not have been able to buy in volume before the "e-mall." (Source: Governing.com, May 26, 2000.)
In fact, unlike farm prices, personal computer prices
have actually fallen in absolute terms since they entered the marketplace.
plummet on a daily basis and no matter when you choose to buy, the prices for a comparable machine invariably will be several hundred dollars cheaper within months of your purchase.
As computer prices
continue to fall and ease of use continues to rise dramatically, newspaper Web site visitors are beginning to much more markedly resemble the population at large (i.e., as education and income levels of Web users continue to drop, the elitist nature of the Web crowd begins to fade).
(14) See "Using a hedonic model in the CPI to adjust personal computer prices
for changes in quality," Consumer Price Index Detailed Report, June 1997, p.
Faced with an increasingly competitive landscape marked by shrinking computer prices
, OfficeMax is revamping its computer business.