More generally, while price deflators
for personal computers (PCs) often are estimated with hedonic techniques, the nexus of innovation has moved beyond PCs to mobile devices and areas that are, perhaps, less visible like navigation equipment (GPS).
An important distinction between pairing GDP with its deflator
and pairing IP with the CPI is the extent to which products in the output index are matched to products in the price index.
The composition of deflators
also changed markedly, mainly reflecting government policy.
T] obtained using the NFB and PCE deflators
are virtually zero.
It is a general feature of term structure models that only a subset of the parameters that determine the dynamics of the state-price deflator
and the state variables is identified in the cross-sectional bond-pricing solution.
A conceptually superior procedure to deflating health expenditures by the CPI is to deflate them through a sectoral approach comparable to that used in deflating gross domestic product (GDP), where own-price deflators
are identified for each type of expenditure.
For simplicity, in many cases the real money stock is defined by using as the relevant deflator
the price of either of those goods.
For its 1982 benchmark indexes of office and computing machines, the Census Bureau adopted the price deflator
that the Commerce Department's Bureau of Economic Analysis (BEA) and the IBM Corporation developed jointly.
According to the reconciliation methodology used in this article, all of the difference in the growth rates of these two series was caused by the different price deflators
These two alternative deflators
have diverged considerably more in the United States than in Canada over the 1961-2007 (Chart 6).
The basic series is deflated using the CPI-W but, for purposes of comparison, an alternative series obtained using the fixed-weight PCE deflator
also is presented.
For use in deflating R&D for the national accounts, the authors concluded that at the macro level, the impact on R&D investment and GDP is not greatly affected by the choice of industry-specific or aggregate deflators