This PDF is a selection from an out-of-print volume from the National Bureauof Economic Research

Volume Title: The Economics of New Goods

Volume Author/Editor: Timothy F. Bresnahan and Robert J. Gordon, editors

Volume Publisher: University of Chicago Press

Volume ISBN: 0-226-07415-3

Volume URL: http://www.nber.org/books/bres96-1

Publication Date: January 1996

Chapter Title: List of Contributors, Indexes

Chapter Author: Timothy F. Bresnahan, Robert J. Gordon

Chapter URL: http://www.nber.org/chapters/c6075

Chapter pages in book: (p. 477 - 496)

Contributors

Paul A. Armknecht Bureau of Labor Statistics 2 Massachusetts Avenue NE Room 321 1 BC Washington, DC 202 12

Andrew Baldwin Prices Division, Statistics Canada D2, Jean Talon Building, 13th floor Tunney’s Pasture Ottawa, ON KIA OT6, Canada

Emst R. Berndt Sloan School of Management Massachusetts Institute of Technology 50 Memorial Drive, E52-452 Cambridge, MA 02 139

Timothy F. Bresnahan Department of Economics Landau Center Stanford University Stanford, CA 94305

John C. Brown Department of Economics Clark University 950 Main Street Worcester, MA 01610

Erik Brynjolfsson Sloan School of Management Massachusetts Institute of Technology 50 Memorial Drive, E53-313 Cambridge, MA 02139

477

Linda T. Bui Department of Economics Boston University 270 Bay State Road Boston, MA 02215

Pierre DesprCs Prices Division, Statistics Canada Jean Talon Building, 13th floor Tunney’s Pasture Ottawa, ON KIA OT6, Canada

W. E. Diewert Department of Economics University of British Columbia Vancouver, BC V6T lZ1, Canada

Robert C. Feenstra Department of Economics University of California Davis, CA 95616

Robert J. Gordon Department of Economics Northwestern University 2003 Sheridan Road, Room G-174 Evanston. IL 60208

Shane M. Greenstein Department of Economics University of Illinois 1206 South Sixth Street Champaign, IL 61820

478 Contributors

Zvi Griliches National Bureau of Economic Research 1050 Massachusetts Avenue Cambridge, MA 02138

Jerry A. Hausman Department of Economics Massachusetts Institute of Technology Room E52-27 1 A Cambridge, MA 02138

Charles R. Hulten Department of Economics University of Maryland Tydings Hall, Room 3105 College Park, MD 20742

Walter F. Lane Bureau of Labor Statistics 2 Massachusetts Avenue NE Room 3615 PSB Washington, DC 2 1202

Joel Mokyr Department of Economics Northwestern University 2003 Sheridan Road Evanston. IL 60208

Brent R. Moulton Bureau of Labor Statistics 2 Massachusetts Avenue NE Room 3 105 Washington, DC 20212

Alice Nakamura Faculty of Business University of Alberta 3-23 Business Building Edmonton, AB T6G 2R6, Canada

Masao Nakamura Faculty of Commerce, Institute of Asian

Research, and Faculty of Applied Science

University of British Columbia 2053 Main Mall Vancouver, BC V6T 122, Canada

William D. Nordhaus Department of Economics Yale University 28 Hillhouse Avenue New Haven, CT 065 11

Walter Y. Oi Department of Economics University of Rochester Rochester, NY 14627

Daniel M. G. Raff Department of Management The Wharton School University of Pennsylvania Philadelphia, PA 19104

David H. Luclung-Reiley Department of Economics and Business

Administration Box 18 19, Station B Vanderbilt University Nashville, TN 37235

Marshall B. Reinsdorf Division of Price and Index Number

Bureau of Labor Statistics 2 Massachusetts Avenue NE Room 3 105 Washington, DC 202 12

Clinton R. Shiells International Monetary Fund 700 Nineteenth Street NW Room 5-2 18 Washington, DC 2043 1

Research

Rebecca Stein Department of Economics Northwestern University 2003 Sheridan Road Evanston, IL 60208

Kenneth J. Stewart Bureau of Labor Statistics 2 Massachusetts Avenue NE Washington, DC 202 12

Robert Summers Department of Economics University of Pennsylvania 37 18 Locust Walk Philadelphia, PA 19 104

Valerie Y. Suslow University of Michigan Business School 701 Tappan Street Ann Arbor, MI 48 109

479 Contributors

Manuel Trajtenberg Department of Economics Tel Aviv University Tel Aviv 69978, Israel

Jack E. Triplett Bureau of Economic Analysis Department of Commerce 1401 K Street NW Washington, DC 20230

Glen L. Urban Sloan School of Management Massachusetts Institute of Technology 50 Memorial Drive, E52-473 Cambridge, MA 02139

Frank C. Wykoff Pomona College 645 N. College Avenue 109 Seaver North Claremont, CA 91711

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Name Index

Ackerknecht, Erwin H., 181 Aizcorbe, Ana, 403,428 Alchian, Armen A., 1191114 Allen, R. G. D., 426n11 Alterman, William, 250, 2651112 Amemiya, Takeshi, 338 Anderson, S. P., 230n29 Anglin, Paul M., 405116, 4271113 Appert, Benjamin N., 160 Apple, Rima D., 162n34, 163 Archibald, R. B., 428 Armknecht, Paul A,, 382,384,424n2,425,

Arrow, K. J., 132 Arsenault, Raymond, 128n27, 13 1 Asher, Harold, 1191114

432

Bailey, N. T. J., 1191112 Baily, Martin N., 16, 55n9 Baker, Russell, 124 Balk, B. M., 424n3, 428 Bastiat. Fredtric, 33 Baye, Michael R., 405n6.427~113 Beaver, M. W., 163 Becker, Gary S., 5 , 14, 133, 144111 Beebe, Alfred, 158 Behring, Emil, 158, 185 Beran, Jan, 416n10 Berndt, E. R., 88, 310, 331n3, 344, 394, 430 Beny, Steven, 76-77n13,229n27, 240,

242x110, 274, 331n2, 335nn5,6,7, 337, 363

Bezanson. Anne. 49t

Blackorby, C., 2181117 Boes, Duane C., 401n2,406,419,421 Bond. Ronald S., 291 Bonomo, Giovanni, 159n30 Booz, Allen, and Hamilton. Inc., 116n7 Borden, Gail, 160 Bowley,A. L., 427nn12,14,432 Brainard, S. Lael, 260n7, 261-62t Braithwait, Steve D., 403 Bresnahan, Timothy, 8, 79, 87n25,242,

289nl0, 331nn2,3,334, 335, 337, 338, 339n15,344n28,351n34,356,360,363, 364n3,366n5

Breusch, T. S., 219n20 Broussais, Frangois, 1811163 Brown, John C., 144, 1511114, 184, 185 Brown, R. K., 161, 1781160, 180 Brynjolfsson, Eric. 33 ln3, 35 11134, 364n3,

Buchanan, Ian, 163, 165n37 Budd, William, 154n21 Burnett, John, 61t, 621111 Burtless, Gary, 2 1 In4

366n5

Cain, Louis, 184 Carli, G. R., 424-25 Carlson, Chester, 117n10 Carrier, Willis H.. 122 Carruthers, A. G., 423,424113,426111 1 Cautley, Edmond, 162, 163n35 Caves, Richard E., 2971115 Ceamal, Martin E., 283 Chaney, Paul K., 118

481

482 Name Index

Cheadle, W. B., 162, 1631135 Christensen, Laurits R.. 406 Cipolla, Carlo M., 149n12 Clark, H. A,, Jr., 75117, 76 Coale. Ansley, 11 9n 12 Coase, Ronald H., 119n15 Cochran, William G., 402113 Cockburn, Iain, 274, 430 Cocks, Douglas L., 2891110 Colt, Henry, 163 Cole, Roseanne, 67, 33 1 n3 Cornford, Dominic, 333 Council of Economic Advisers (CEA), 52-

Court, A. T., 71. 79, 102, 103, 104115 Court, L. M., 428 Cowan, Ruth S., 144n1, 150, 1561125, 1571127,

Cradock, H. C., Mrs., 1631135. 168 Cramer, Stuart W., 1221119 Crawford, A., 4321126 Crellin, John K., 1591130, 183

53t, 109-10.259, 365

172, 175, 176

DalCn, Jorgen, 418, 424n3, 425nn4,7, 426.

Dannenberg, Andrew J., 279 Darmstadter, Joel, 61t Daunton, M. I., 1701149, 172 David, Paul, 55 Davidson, J. Hugh, 116n7, 1241123 Davies, Crighton, 163n35, 168 Deaton. Angus, 39114, 217,2181117 de Beaune, Sophie, 32, 36t Dell’Osso, Filippo, 326 de Moleyns, Frederick, 37 Denison, E. F., 109,251 de Palma, A,, 2301129 Devinney, Timothy M., 118 De Vries. Jan, 144111, 176 Diewert, W. Edwin, 4, 39114, 212,252, 256,

42811 18

2961114,375,388,395,423t1, 425114, 427,428,430,438,439

Dixit, Avinash, 230 Doblin, Clair, 32, 48118 Dorfman, Robert, 300 Douglas, Paul, 55-56 Dow, J. S., 33n3, 36-37t Dubberstein, Waldo H., 33 Dulberger, Ellen, 331113, 332, 3411118, 343,

344,354 Dutot, C., 425,433 Dwork, Deborah, 163, 165, 167, 179 Dyhouse, Carol, 167, 168

Easterlin, Richard, 145115, 159n3 I Eaton, B. Curtis, 12112, 237111 Ebcrth, Karl, 158 Edgeworth. F. Y., 424,42711 I2 Edison, Thomas, 37, 38,48 Edwards, H. R., 174t, 175, 176f Eichhorn. W., 426 Ellison, Glenn, 15311 18 Enos, J.. 117 Escherich, Theodor, 158 Evans, Richard J., 202,204 Evenson, Robert, 115n5, 119n13 Ewbank, Douglas C., 144n3, 164 Eyler, John M., 154n20

Faraday, Michael, 37 Farber, Howard, 33112 Farr, William, 154nn20,21, 155 Feenstra, Robert C., 230n30,250,252,253,

2661113,269,331112 Feinstein, Charles H.. 173f. 176f, 178f Ferger, W. F., 4271112 Fine, Steven N., 279 Finlay y Barres, Carlos, I79 Fischhoff, Baruch, 202 Fish, Stewart A,, 182n67 Fisher, Franklin M., 112, 332, 428. 439 Fisher, Irving, 403,424, 425nn4,7, 426,

Fixler, Dennis, 209, 210, 388, 428. 4291119 Flamm, Kenneth, 331113, 332,3401117,

Fletcher, Horace, 1521117 Flink, J. J., 72n2 Florence, P. Sargant, 124n23 Flux, A. W., 426n11,427nn12.14 Fogel, Robert W., 144 Fomell, Claes, 2911112 Forsyth, F. G., 405,409,424113 Fowler, R. F., 405.409,424n3 Fox, A. Wilson, 177, 178f Fracastoro, Girolamo, 159n30 Frank, Johann Peter, 153, 166n38 Friinkel, Albert, 158 Freeman, Christopher, I 15, 118 Freudenheim, Milt, 289 Fridlizius. Gunnar, 145 Friedman, Andrew, 333 Friedman, David, 137 Friedman, Milton, 134,405117 Frisch, Ragnar, 406,425114 Fryer, Albert, I60 Fudenberg, Drew, 153n18

4281116,433

341n18,343.351n34

483 NameIndex

Gariepy, Thomas P., 202 Gasmi, F., 327 Gaster, Leon, 33n3, 36-37t Gavarret, Jules, 1551122 Genereux, P., 428 Colder, Peter N., 2911112 Goldmark, Peter, I17 Gordon, Richard, 15 1 n15 Gordon, Robert J., 16, 55n9,62, 71,73,77,

84, 89,90t, 102, 105, 331113, 332, 343, 354,364,394,428,430,432n26.441-42

Gorman, W., 2181117 Gorrie, John, 122 Goubert, Pierre, 159-60n32, 170, 171, 172,

Gray, Robert D., 49t Graybill, Franklin A,, 401112, 406, 419,421 Greenstein, Shane, 341, 3441128, 353n35, 354,

Greenwood, Joen E., 332 Griliches, Zvi, 71, 76, 86, 88, 89, 90t, 102,

173, 174, 182

356,359,360,363

104, 115n5, 116n8, 118, 119, 120,274, 302,33In3,344,365,394,429,430

Grossman, G. M., 116118. 1191113 Grossman, Michael, I5 I Grove, A. S., 364 Guha, Sumit, 144, 1651137,203

Haines, Michael, 144n3, 160, 162, 164, 170,

Haller, John S., 181 Hallidie, Andrew S., 120 Hamlin, Christopher, 169 Hanoch, Giora, 274 Hansen, Alvin, 55 Hardy,Anne, 1691147, 171, 172n53, 177 Hausman, Jerry A., 21 1 nn3,4,2 1211115.6, 2 16,

183. 1871172

219,220,221,228nn24,25,229n28,230, 2311131,240,365

Helkie, William, 249, 265 Helpman, E., 116n8. 119n13 Hicks, JohnR., 112112, 210, 211,212, 213,

235,430,431,439 Hill, F. E., 93113 I Hill, Octavia, 1721152 Hill, P., 4281117, 430 Hilton, George W., 120, 134 Hirshleifer, Jack, 129 Hodgkinson, Ruth G., 1551123 Hofsten, E. von, 439 Hogg, M. H., 428n18 Holmes, C. B., 120, 182 Hooper, Peter, 249, 265

Hoover, Ethel D., 44,46-47t, SS,61t Houthakker, Hendrik S . , 249 Howenstine, Ned G., 259t Hudson, Robert P., 154n20, 159n30, 1811162 Huntington, Ellsworth, 122, 124 Hurwitz, Mark A.. 2971115 Hussey, Miriam, 49t

Imhof, Arthur, 164, 176 Ingels, Margaret, 122, 124 Inmon, William M., 333

Jack. Florence B., 176-771156 Jackman, Patrick, 403, 428 Jevons, W. Stanley, 425,433 Jewkes, John, 56,57t, 117 Judd, K. L., 2141110 Judson, Whitcomb L., 116

Kalton, Graham, 384 Kalyanaram. Gurumurthy, 291n12,304,308,

Kasprzyk, Daniel, 384 Kearns, Gerry, 1691145 Khanna, Tarun, 3411118 Kimes, B. R., 75n7,76 King, Lester, 181 Kintner, Hallie J., 167, 202 Kirby, Richard S., 169n46 Kislev, Yoav, 1191113 Koch, Robert, 146, 158, 169, 185,201 Kokoski, Mary, 382 Konus, A. A,, 212,427 Gamer, Howard, 161n33 Krugman, Paul, 249 Kuznets, Simon, 110, 118nll

309

Laffont, J . J., 327 Lancaster, K. J., 14 Latour, Bruno, 146n6, 159, 182, 183 Lean, David F., 291 Lebergott, Stanley, 45117,551, 109 Leffler, Keith B., 297111.5, 324 Leonard, G., 216,2281125 Lever, William H., 175 Levinsohn, J., 76-77n13,229n27,331n2 Lewis, H. E.. 428 Lichtenberg, Frank, 302 Lichtenstein, Sarah, 202 Liegey, Paul R., Jr., 383 Lipsey, Richard G., 12n2, 237nl Lister, Joseph, 182 Loudon, Irvine, 1821166

484 Name Index

Louis, Pierre C. A,, 154n20, 155, 156 Lovitt, W. V., 4281116 Lucking-Reiley, David H., Jr., 298n16 Lynn, Matthew, 3021120

McCusker, John J., 44,46-47t, 551110 MacDonald, L., 452 McDonald, Richard, 403, 428 McGowan, John J., 332 Machiavelli, Niccolo, 235 McKenzie, Constance A,, 279n2,28 1 McKeown, Thomas, 144 McManners, John, 152 McNeil, Donald, I19n12 Magee, Stephen, 249 Manser, Marilyn, 403, 406, 428 Mansfield, E., 118, 120 March, L., 4271112 Marcus, Alan I., 1711150 Marshall, A., 430, 439 Mataloni, Raymond J., Jr., 259t Mathias, Peter, 1591132 Mayhew, Henry, 155n23 Meckel, Richard A,, 161, 162x134 Metchnikoff, Elias, 1.58 Michaels, Robert, 3411118 Midgley, Thomas, Jr., I 17 Mills, F. C., 427nn12,14 Mitchell, B. R., 166f, 173 Mizon, G. E., 2191120 Mokyr, Joel, 4, 145, 148, 1901175, 196 Mood, Alexander M., 401n2,406,419,421 Moor, Henry Ludwell, 1251124 hi'oror; 103, 104114 Motor Vehicle Manufacturers Association,

130n29 Moulton, Brent R., 417nll,424n2,425, 432 Mowrey, David, 12011 16 Mudgett, B. D., 427n12,428n18,430n23 Muellbauer, John, 39n4, 217,218n17 Murdock, William, 34

National Automobile Chamber of Commerce,

Naul, G. Marshall, 103112 Neary, J. P., 211112 Neisser, Albert, 158 Neumann, Salomon, 184 Nevins, A,, 931131 Newcomb, T. P., 97n35 Newey, W., 212116,2281124 Newman, George, 184-85 Nicolle, Charles, 179

104n4

Nightingale, Florence, 155n23 Nordhaus, William D., 16, 33 Nuttall, George, 179

0 Grida, Cormac, 190n75, 196 Ohta, M., 71, 102, 104 Oi, Walter Y., 30n 1, 1251124 Oliner, Steve, 331n3, 337, 3401117, 3411118,

343,344 Otto, Roland, 203

Pakes, A,, 76-77n13.229n27.33In2 Park, Hallock, 158 Pasteur, Louis, 146, 13-59. 169. 182, 201 Pearson, Frank A,, 44,46-47t Perloff, Jeff, 2891110 Pettenkofer, Max, 1551124, 159-60n32,

Phister, Montgomery. Jr., 3401117, 3411118,

Pierson, N. G., 426nn8,10,427 Pigou, Arthur C., 397,403n4,425n4,426nlO Poisson, Denis, 155122 Pollak, Robert A,, 144112, 209, 404, 427 Pooley, Colin G., 178 Pooley, Marilyn E., 178 Porter, Theodore, 154, 156 Preston, Samuel, 144113, 160, 162, 164. 170,

183, 1871172,204 Primont. D. A,, 2181117 Proskauer. Curt, 1821165

185n7 I

343.3441129

QuCtelet, Adolphe. 155

Raff, Daniel M. G., 79, 871125 Reekie, W. D., 2891110 Reinsdorf, Marshall B., 250, 251. 398, 404115,

405n6,409,411,418,423,424n2,427. 429,432

Reiser, Stanley J., 159n30 Reiss, Peter C., 2891110 Riedel, James, 249 Riley, James C., 146117, 152, 159-601132, 179 Roberts, K. W. S., 21 In2 Roberts, Mark J., 327-28 Roberts, Robert, 1571127, 178n60, 180 Robinson, J.. 213 Robinson, William T.. 291 n 12, 308, 309 Rogers, Naomi, 180 Rollet-Echalier, Catherine, 162. 163, 1671139 Romeo, A. A,, 1201116 Roscn, George, 155, 181, 184, 185 Rosen, Sherwin, 102, 103, 104

485 Name Index

Rosenberg, Nathan, 118 Rosett, J. G., 430 Rotella, Elyce, 184 Rothbarth, E., 112, 210,211, 212 Routh, C. H. F., 162 Rumsey, Henry, 1551123, 156 Rusnock, Andrea A., 154n20 Russell, R. R., 2181117 Ryan, P., 761112 Ryan Johansson, Sheila, 14

Saglio, A., 429 Sakamoto-Momiyama, Masako, 128 Samuelson, Larry, 327 Samuelson, Paul A,, 33, I l l n l , 327-28.428 Samuelson, William, 2911112 Sato, Kazuo, 249,253 Sauerbeck, A., 425n4,426n11 Saulnier, M., 4281118 Savage, Leonard, 134 Sawers, David, 56, 57t. 117 Scherer, F. M., 11516, 214n10 Schmalensee, Richard L., 2141110, 291n12,

Schmidt, M. L., 4281118 Schmidt, P., 219n20 Scouler, Bonnie Jean, 279112,324, 32% Sellwood, D. J., 423,424n3,426n11,427n12,

Semmelweis, Ignaz, 1541120, 182 Shell, K., 112, 428, 439 Showalter, M. H., 331n3 Sigalla, F. D., 4111.4321126 Silliman, Benjamin, Jr., 34, 35t, 38.48, 49t Sloane, Hans, 1661138 Slotsky, Alice L., 33112 Slovic, Paul, 202 Smith, Adam, 64 Snow, John, 154n21, 169n46 Sprague, Frank J., 120 Spree, Reinhard, 158, 165, 167, 1841168, 203 Spun; R. T., 97n35 Steiner, Peter O., 300 Stevenson, Lloyd G., 1581128 Stewart, K. J., 424n2,425,432 Stewart, William, 1821165 Stigler, George J., 110, 133 Stiglitz, Joseph, 230 Stillerman, Richard, 56, 57t, I17 Stokey, Nancy L., 1191115 Stotz, Louis, 32t, 34, 36-37t, 4 8 . 4 9 ~ 61t Strauss, John, 144111 Strauss, Rita, 176-771156

297n 15, 300,304

43 1 n25

Sundhack, Giddian, 11 6 Surry, Jean, 130n30 Suslow, Valerie, 2891110 Sutton, J., 215nn14,15, 325 Swamy, J., 428 Swan, J. W., 37 Szreter, Simon, 144, I59n32 Szulc, Bohdan, 406,409,423,424113,

42511114.7.42611 10

Taylor, William, 219, 221, 240 Tellis, Gerard J., 2911112 Thisse, J.-F., 230n29 Thomas, Carol, 1761155 Thomas, Duncan, 144nl Thorne, Stuart, 160, 162 Tirole, J., 2311132 Tomes, Nancy, 145, 159n31 Tornqvist, Leo, 403n4 Trajtenberg, Manuel, 8, 15.71, 76-771113,

77n14, 88n26. 105,238,243,274,330, 43 1

Tranter, N. L., 163 Triplett, Jack. 39115, 71, 102, 103, 104n5,

330nl. 331n3,343,354,356n38,394, 395,427n12,430,432n26,440-41

Turvey, Ralph, 409,424n3,427nn12,14 Twist, Brian, 105

Urban, Glen L., 213n9,291n12,304,308,309 US. Bureau of Labor Statistics (BLS),

U.S. Bureau of the Census, 44,46-47t, 49t, 126n26, 127t

52-53t, 621111, 72, 125t, 126t, 127t, 128t, 129t. 131t

U.S. Congress, 4 U.S. Department of Commerce, 59t, 259t U.S. Department of Labor, 402113 Usher,Dan, 110-11, 114114, 191, 194

van Benesch, F., 33 Van de Walle, Etienne, 204 Vartia, Y. 0.. 253 Vernon, H. M., 124, 1301130 Vernon, Raymond, 250,254 Villermt, Rene, 155 Virchow, Rudolf, 184 Virts, John R., 2891110 Voeller, J., 426 Vogele, Jorg, 203, 204 von Liebig, Justus, 1591130 Vuong, Q. H., 327

486 Name Index

Walsh, C. M., 424,42Snn4,7, 42611118.9.433 Ward, P. W., 423,424n3,426nI 1 Warren, George F., 44.46-47t Watkins, Susan C., 144n2 Wattenon, Bill, 235 Watterson, Patricia A,, 163, 165n37, 203 Weyback, Donald, 382, 384 Whetham, E. H., 163 White, Halbert, 418 White, Randall, 32, 36t Whitney, D. E., 86 Whitney, Eli, 129 Williams, Peny, 157n26 Williamson, Jeffrey G., 177, 178f, 186f, 193,

Wilson, Charles, 175 194, 195

Winer, Russell S. , 11 8 Wise, D.. 229n28 Wohl, Anthony S., 154, 1571126 Wood, David O., 310 Woodhead, Sims, 170 Woods, Robert L., 145114, 163, 1651137, 178,

Woodward, John, 145114, 163, 1651137.203 Woolford, K., 426111 1 Woolridge, J. M., 331113 Wynne, M . A,, 4111,4321126

203

Zakim, David, 279 Zeckhauser, Richard, 2911112 Zeile,William, 260116 Zona, J. D., 216,2281125

Subject Index

Advertising: for antiulcer drugs, 291-94, 326; effect and elasticities of, 327-28; litera- ture, 327; market-expanding, 278; phar- maceutical industry, 29 1-92; ready-to-eat cereal industry, 215

semination, 20-21, 121-33 Air conditioner: impact of invention and dis-

Antiseptics, 182-83 Antiulcer drug market: advertising for, 291-

94, 326; analysis of growth in sales, 295- 304; measuring marketing efforts of, 296-97; order-of-entry effects, 291, 305-6,308-9,312,326; recommended additional research, 3 13; rivalry among companies. 280,289,291,323; U.S. sales by drug type (1977-93), 283-87

279-80; detailing levels, 289-93; FDA approval for, 280-82; Hz-receptor antago- nists, 277-78, 280; marketing of, 278; pricing policies, 285, 288-89

254-55.263-70: Cadi index formula, 424-26, 432-33; for elementary compo- nents of CPI, 424-25; geometric mean price index, different from, 425-27

Attributes: antiulcer drugs, 312; of automo- biles, 74-76, 79-8 I ; brand choice based on, 229; as indicators of quality, 79; mea- surement of computer power, 343-48; of transportation services, 6. See also Char- acteristics

Antiulcer drugs: anticholinergic agents,

Arithmetic mean: BLS import price indexes,

Automobiles: attributes for hedonic regres-

sions, 79-8 1 ; growth of and changes in industry, 7 1-72; price evolution, 77-79; quality-adjusted price indexes, 84-9 1 ; rate of quality change, 86-87; system de- sign evolution, 97-100; technology of, 73-74

Best-practice technologies: changed thinking, 156; diffusion of, 152-60; influence of germ theory of disease, 160-86

Bias: BLS official import price index, 254-55, 263-7 1, 276; in chaining, 397; commodity-substitution, 428; in computa- tion of price indexes, 428; condition for price index, 406; in Consumer Price In- dex (CPI), 4,431-43; elementary index functional form, 424-27, 432; in esti- mates of computer market surpluses, 341-42; evaluation of component in- dexes, 407-9; for lighting in consumer spending, 61-62; in lighting prices, 43-44; linking, 429-3 1 ; in measurement of real income growth, 60; new-goods, 428,430; new-introductions, 395,430- 31, 433; outlet-substitution, 428-29, 432; potential for all consumption, 62-63; po- tential in import price index, 251-55; in price indexes, 55-58; in quality-adjusted prices, 91-96; as relative concept, 427; seller-substitution, 404-5; with substitu- tion in Laspeyres price indexes, 403-4; in trend reversion of sellers' prices, 405-7

487

488 Subject Index

BLS. See Bureau of Labor Statistics (BLS) Brand choice: model based on product attri-

butes, 229-3 I ; model under imperfect competition, 23 1-35, 239; ready-to-eat cereal perfect competition model of,

Brands: barriers to entry for new, 215-16; in- troductions in ready-to-eat cereal indus- try, 213-16; share in ready-to-eat cereal industry, 214-15

dexes, 45 I

Purchase household survey, 379-80, 386-87.402; probability-proportional-to- size sampling, 401-2; sampling methods for CPI, 378-80; substitution procedures in CPI sample, 38 1-86; use of Laspeyres price index model, 393-95. See also Con- sumer Price Index (CPI)

216-29

Bureau of Economic Analysis (BEA) price in-

Bureau of Labor Statistics (BLS): Point-of-

Buyer’s surplus. See Consumer’s surplus

Carli price index, 424-26.432-33 Cereal industry, ready-to-eat: barriers to entry,

215; concentration in, 214-15; lack of new entrants, 214-16; model of brand choice, 216-29; new-brand introduction, 213-14

CES. See Constant elasticity of substitution (CES); Consumer Expenditure Survey (CES), BLS

Chadwick Report (1842). 154 Chaining: in component indexes, 405-7; new

products in price indexes, 397-98 Characteristics: approach to new technologies,

68-70; automobile, 103-6; of computer systems, 342-45,363; of process innova- tions, 113. See also Attributes

Characteristics, service: hedonic or shadow prices, 39-40; labor cost of, 50; of light, 45,48,67; price and production of, 39; price mismeasurement, 60-6 I ; prices of old and new good, 42-43; produc- tivity growth, SO; true price of lighting, 41-45

Commodities and Services Survey (C&S),

Commodity-substitution bias, 428,43 1-32 Competition: antiulcer drug market, 280,289,

380-8 1

291,323; automobile industry, 72; with introduction of new goods, 239; ready- to-eat cereals, 215-17

Competition, imperfect: link to new goods,

243-46; with new-brand introduction, 210; in valuation of new goods, 231-34

Competition, perfect: with new-brand intro- duction, 210; new goods valuation under, 211-13

chained, 405-7; geometric means used in basic, 409-15; substitution bias in Las- peyres, 403-5. See also Consumer Price Index (CPI); Laspeyres component in- dexes

Computer industry: benefits to buyers from in- novation, 23, 330; effect of demand, 333; estimates of changes in, 345, 347-50; ex- tension of capabilities, 332; price of old and new generations, 332; price per com- puting unit, 331-32; technical change in, 364. See also Software industry

Computer Intelligence Corporation (CIC) data, 344

Computers: in Canada’s IPPI, 446,45 1-57; changes in system characteristics (1968- 81). 343-45, 348f; development of mini- computers, 334; in Japan’s DWPI, 464-73; relation of computing power to quality and cost, 345, 347; variables mea- suring computing power, 347-48

Computers, mainframe: definitions, 341-42; market share and price, 342-43; substi- tutes for, 333-34; technological change (1968-81). 331-34

Constant elasticity of substitution (CES): ag- gregator function, 250-54, 274-75; in product differentiation models, 230-32

Consumer Expenditure Survey (CES), BLS, 379,387

Consumer Price Index (CPI): biases in, 4,25, 427-32; BLS setting of base period, 375-76; component indexes, 400-403; computation of elementary components, 424-25; as constant-quality price index, 382; Consumer Expenditure Survey (CES), 379,387; consumer marketplace structured by, 378; cost-of-living mea- surement by, 390,393; effect of Las- peyres and geometric mean on compo- nents of, 410-15; effect of trend reversion on component indexes, 406; entry-level items (ELIs), 378-81, 386-87; function of and uses for, 375, 391-92.407; imputation of price change, 383-86; as Laspeyres price index, 9, 388, 393-95; market basket, 388; new-product

Component indexes: bias in basic, 407-9;

489 Subject Index

effect on, 376; new-product introduction, 24; new-product substitution procedure, 24, 381-86; overstatement of, 210; prob- lems of new products for, 375-78, 387-88; substitutes within categories, 389-90; surveys, 379-81,402; theory of, 209; treatment of same product price dif- ferentials, 25 1

dexes: bias in, 406-9; seller selection for, Consumer Price Index (CPI) component in-

400-403 Consumers: behavior related to new-product

introduction, 11 8-2 1 ; brand choice under perfect and imperfect competition, 216- 35,237-39; consumer demand model, 146-52; CPI marketplace of, 378; health- related demand, 144-46; preferences, 43, 144

Consumer’s surplus: before and after new goods’ complements, 8-9; in climate con- trol, 133; computer systems, 351-56, 368-71; conditions for overestimate of, 230; in demand-supply computing power model, 339-40,35 I-56,365-68; with en- try of new product, 11 1-14; for new- brand cereal introduction, 228, 238-40; relation to true COL index, 10; in value of new goods, 210

Consumption: bias for all, 62-64; by degree of qualitative change, 57-60; health- related changes in, 160-86; of old and new products, 378; spending for lighting

Corporate Service Price index (CSPI), Japan,

Cost-of-living index (COL index): cost of

(1760~-1960), 61-62

457

lighting effect on, 3-4; CPI viewed as, 388; definition, 2; differences from Las- peyres price index, 405; function of, 388; Koniis, 403, 404, 427; Pollak’s social, 427; relation to consumer’s surplus con- cept, 10; true, 3-4.7-10

CPI. See Consumer Price Index (CPI)

Data: imports of U.S. multinationals (1982, 1987). 259; nineteenth-century empirical, 156; for true price of light, 44-49

Data collection: CPI program, 380-81; emer- gence of, 154; recommended for BLS im- port price index, 271,276

Data sources: analysis of influences on ulcer drug market shares, 305-6; antiulcer drug industry, 282-83,314-21; automo-

bile hedonic price index, 74-76: BLS im- port price index, 263; estimates of com- puter market surpluses, 340-44; for import price indexes, 250; intracompany imports, 259-63; model of brand choice of ready-to-eat cereal, 216-18, 220; Na- tional Detailing Audit, 3 19-20; National Journal Audit, 320-21; price of light, 44- 45,48; quality-adjusted automobile prices, 92

Demand: for air-conditioning, 133; computing capacity model, 334-36,345,347-51; consumer model, 146-52; factors in anti- ulcer drug market, 295-304,323-26; household’s heating and cooling, 137-39; new-brand cereal choice model, 21 7-23; new goods with virtual price, 211; U.S. import, 265-70; willingness to pay based on, 12

Demand structure: new goods under imperfect competition, 231-35.243-44: new goods under perfect competition, 21 1-29

Detailing, pharmaceutical industry, 283, 289- 93,296

Discoveries, disease-related, 18 1-83 Disease: avoidance through food preparation

changes, 160-64, changes in beliefs about, 152-60, 187-90; classification of causes, 187-90, explanations for decline of, 144-46; gastric and duodenal ulcers, 279; gastroesophageal reflux, 279; in- sects as carriers of, 178-80; perceived so- cial nature of some, 184; public policy to combat, 177-78; reduced morbidity from, 204; understanding and treatment of,

Domestic Wholesale Price Index (DWPI), Ja- pan: computers in, 464-70; construction, 457-58; hedonic pricing and weights in, 465-69; market basket, 458; pricing prin- ciple, 458

(DWPI), Japan

180-81

DWPI. See Domestic Wholesale Price Index

Elasticities: of advertising, 327-28; income, of import demand, 249-50,265-70; new goods under imperfect competition, 23 1- 35,243-44; new goods under perfect competition, 21 1-29; prices of antiulcer drugs, 303,307-10. See also Constant elasticity of substitution (CES)

ELIs. See Entry-level items (ELIs) Energy supply technology, 168-73

490 Subject Index

Entry-level items (ELIs): CPI definition of, 387; as CPI item stratum, 378-79; in CPI sample rotation system, 386-87; in CPI surveys, 379-8 1

Firms: diffusion of best-practice technology among, 153; investment in air- conditioning, 124-28; multinational firm intracompany imports, 259-60,267-68; multiproduct firms under imperfect com- petition, 23 1-34, 243-44: price setting by monopolist, 244-45; single-product firms under imperfect competition, 231- 34,243-44. See also Automobiles; Com- puter industry; Pharmaceutical industry

Fisher-Ideal index, 296, 393,428,433 Food and Drug Administration (FDA) ap-

proval, 278,28042,296,312,323

Gastroesophageal reflux disease (GERD): definition and occurrence, 279; FDA ap- proval for treatment of, 296, 312; treat- ment of, 3 12

Geometric mean: for aggregate CPI compo- nents, 425-27; in basic component in- dexes, 409-15; index number formula, 425-27.433; as measure of price change, 409-10; of sellers’ prices, 409-10

Geometric mean price index: difference from arithmetic mean index, 426-27; rates of change compared to Laspeyres index, 25

GERD. See Gastroesophageal reflux disease (GERD)

Germ theory of disease: changes influenced by, 21, 160-86, 201-3; diffusion, 152- 60,201-5: post- 19 I4 gains, 204; as scicn- tific breakthrough, 146, 158-60

Goods: service characteristics of, 39-40; sub- stitution bias in Laspeyres index, 403-4

Goods, new: availability concept, 439-40: in Canada’s IPPI, 444-46; complements to, 7-1 1 ; consistency processing in Japan, 463-64; consumer’s surplus concept, 10- I I, 111-14, 210; de facto operational definition, 440; definitions, 438-40; de- leted from and added to Japan’s DWPI (1990). 459-63; demand with virtual price, 21 I ; distinguished from existing goods, 11-13; evaluation (Hicks’s the- ory), 211; impact on industry pricing, 245-46; introduction in Japan’s DWPI (1990), 458-64: introduction under im- perfect competition, 213; link to imper-

fect competition, 243-46; market behav- ior definition, 439; measurement of value of, 13-1 6; monopoly pricing of, I 10-1 1 ; new-goods bias, 430-3 I ; omission of ef- fect from current CPI, 209-10; relation of old goods to new varieties, 440-41 : valuation under perfect competition, 211-13. See also Products. new

Health: components of household, 145-46; consumption practices related to, 160-86; production function inputs, 177

Hedonic method: automobile attributes in, 80-81, 102-4; automobile price regres- sions, 8 1-84; limitations in automobile hedonic function, 95, 102-6; to measure automobile price evolution, 71: to mea- sure quality change, 15-16.95-96; use in Japan’s DWPI, 464

Hedonic pricc indexes: automobile, 72-84; au- tomobile, combined, 89-90; automobile index biases. 9 1-97; for low-priced Ford models, 19-20; upward bias, 106

Hedonic pricing: for computing equipment in Canada, 452; to determine effect of sup- ply shift, 10-11; Japan’s DWPI, 465-66; mismeasurement conditions. 344; of ser- vice characteristics, 40: for true price of light. 39

Hicks-Rothbarth theory, 210-13.23 1 Hotelling-Gorman-Lancaster model of brand

choice, 229-31 Household production function, 5: consumer

demand model, 146-52: impact of germ theory of disease, 21, 143-46; new goods as inputs to, 7-8, 143-44; nineteenth- century, 156

Households: adoption of best-practice technol- ogy, 153; determinants of life expectancy and health model, 146-52; factors in im- proved health of, 145, 175-76; heating and cooling demands, 137-39: improved health of, 175-77; information about dis- ease, 187-88, 201; pressure for health- related reforms, 183-84: responsibility for health, 185

Household survey (Point of Purchase), BLS, 379-80.386-87

Hygiene concept, 173-74

Import price index, BLS: arithmetic mean con- struction, 254-55,263-70; compared to constructed indexes, 270-7 1 ; construc-

491 Subject Index

tion with CES aggregator, 250, 252-59; construction with uanslog aggregator function, 255-59, 275; data sources, 263; recommendations for improved, 27 1; up- ward bias, 22, 254-55.270-71

U.S. affiliates of foreign multinationals, 260-62; U S . demand, 265-70; of U.S. multinational firms, 259-60

CPI overall-mean, 383-86; CPI true price change, 377; Japan’s DWPI, 458,463-64; for new goods, 439

Income: elasticity of import demand, 249-50, 269-70; growth of real, 29-30; relation to infant mortality, 186-87. 203. See also Wages, real

problem, 230

433: bias in, 25; choice at elementary level, 432; identified, 424-27; recommen- dations for use of, 433

Industrial Product Price Index (IPPI), Canada: computers in, 446, 452-57; construction of, 443-44; new goods in, 444-46

Industry Selling Price Index (ISPI), Canada, 443-44,452-56. See also Industrial Prod- uct Price Index (IPPI), Canada

Infant mortality: factors in decline of, 164-68, 175-77.203; relation of income to de- cline of, 186-87, 203; relation to unsani- tary conditions, 162-68

constant-quality price indexes, 330; medi- cal, from collected data, 154-55; new product or process, 11 8-20

104-5; benefits to buyers of computers, 330: characteristics approach to measure, 67-70; from complements of new goods, 8; costs and benefits of, 69-70, 114-16; defined, 115; diffusion of, 116-21; im- pact of air-conditioning, 121-33; lag be- tween invention and, 11 7-1 8; mainframe computer systems, 332; new-goods pro- cess in, 4-7: process, 113: social returns to, 133; time from invention to, 117-21, 132. See also Germ theory of disease; In- ventions

468,470

Imports: data on intracompany, 259-63; of

Imputation methods: CPI class-mean, 384;

Independence of irrelevant alternatives (IIA)

Index number formulas: avoidance of Carli,

Information: ahout disease, 187-88, 201; in

Innovations: automobile design, 97-100,

Input-output price indexes, Japan, 464-65,

Insect control, 178-80

International Comparison Programme (ICP), United Nations, 474

International Data Corporation (IDC) data, 340-44

Inventions: benefits of, 117; costs of, 114-16, 132; defined, 115; diffusion and benefits of air-conditioning, 121-33: lag between innovation and, 117-18; measurement of social value, 11 4; patented, 132: related to energy and clean water, 168-73; re- lated to food preparation, 160; successful and unsuccessful, 114; time to innovation from, 117-21, 132: treatment in price in- dexes, 55-57. See also Innovations

IPPI, Canada. See Industrial Product Price In- dex (IPPI), Canada

ISPI, Canada. See Industry Selling Price Index (ISPI). Canada

Knowledge: diffusion of health-related, 152; household’s health-related, 145-46; pro- duction of, 110. 132: as public good, 150; in total factor productivity, 145

Koniis COL index, 403,404,427

Labor force participation, women’s, 176-77 Laspeyres component indexes: effect of trend

reversion, 406; in Laspeyres price index, 399-400; sample-based estimator of, 400-403; substitution bias in, 403-5

Laspeyres price index: advantages and disad- vantages of, 399,403: biases in, 428-31; BLS use for CPI, 393-94; chaining ef- fect, 406; compared to geometric mean component indexes, 410-15; construction of aggregate-level, 399-400; CPI as, 9, 388, 393-95; difference from cost-of- living index, 405; function of, 388, 399; rates of change in, 25

L‘Hospital’s rule, 253111 Life expectancy: determined by household pro-

duction function, 146-52; with energy and clean water, 168; impact of growth in, 193-96,204

Light: labor price of, 48, 50-54; service char- acteristics of, 45: true and traditional prices of, 44-5 1

Lighting: efficiency of different technologies, 3 1-38; prices for different technologies, 48-5 1

Linking bias, 429-3 1 Living standards: with air-conditioning, 122;

relation to health outcomes, 204-5

492 Subject Index

Market baskets: consumers’, 398-99; of CPI,

Marketing: of antiulcer drugs, 278, 310-1 1; 378-79: Japan’s DWPI, 458

data used in antiulcer drug, 282; detailing levels, 289-93; measuring effects of anti- ulcer drug, 296-98; pharmaceutical in- dustry, 291

Market shares: factors influencing antiulcer drug, 304-12,326; influence of advertis- ing on, 327; installed base of computer systems, 342-43; two- and four-product antiulcer drug, 306-10, 326

best-practice, 152-60; pre-gem theory practice, 151; treatment of disease, 180- 82. See ulso Antiulcer drugs; Disease; Germ theory of disease; Physicians

Medicine: antisepsis, 182-83; diffusion of

Megabytes (MB). 344-47 MIPS (millions of instructions per second),

Mortality: factors in decline of. 201-4; factors 69,343-48

in lowered rates, 177-79; related to cli- mate and climate control, 128-29; wel- fare impact of decline in, 190-96. See also Infant mortality

Multinational firms. See Firms

Nash-Bertrand pricing model, 232-34,241-

National Detailing Audit, IMS America, 283,

National Journal Audit, IMS America, 283,

New-introductions bias, 430-3 I , 433

42,244

319-20,314-15

320-2 1

Order-of-entry effects, antiulcer drugs, 29 I ,

Outlet-substitution bias, 423, 428-29,433 305-6,308-9,3 12,326

Pasteur revolution, 158-59: influence on food preparation and storage, 160-64; public policy implications, 183-86. See also Germ theory of disease

Patents: proposal to adjust life of, 133; pro- posed renewal of, 133-34

PCGs. See Principal commodity groups (PCGs), Canada

Pharmaceutical industry: advertising, 29 1-92, 294, 328; analysis of sales growth, 295- 304; detailing, 283, 289-93, 296; rivalry in antiulcer drug market, 280, 289,291, 323; spending for marketing, advertising, and detailing, 283

Physicians: prescribing antiulcer drugs, 277,

281; role in disease prevention and treat- ment, 180-83, 202; time spent with de- tailers. 283, 296

Labor Statistics, 402; for Consumer Price Index, 379-80,386

Price, true: bias in measurement of, 62-63; of light, 5 1

Price, virtual: for Apple-Cinnamon Cheerios, 22,224, 227-28: Hicks’s, 211; in model of cereal brand choice, 228: of new goods, 21-22. 210; as shadow or reserva- tion price, 21 I

measurement of, 405; comparison of Las- peyres and geometric mean indexes, 410-15; CPI decomposition of, 377; CPI imputation of new product. 383-86; CPI imputed constant-quality, 383-86; in CPI with product replacement, 376-77; effect on chaining effects, 406; geometric mean measure of, 409-10; measured by Cana- dian IPPI, 443; measured by CPI, 375- 77, 382; quality-adjusted automobile, 19, 76-77, 84-91. See ulso Imputation methods

Price differentials: CPI, 25 1, 382-86; retail outlet products, 25 I

Price indexes: adjustment for quality change, 4 1-43; automobile quality-adjusted, 72- 73, 76-77, 84-91; biases in, 428-32; dif- ferences in arithmetic and geometric mean, 426-27; estimates of real income, 29; Japan’s DWPI, 457-64; measurement during technological change, 39-45: with omission of cereal new-brand effect, 228-29: pharmaceutical industry, 296; re- porting of hedonic quality-adjusted, 15- 16,95-96: use of U.S. for Canadian com- puting equipment, 45 1-52; using producer-theory approach, 428. See also Geometric mean price index: Hedonic price indexes: Import price index, BLS; Input-output price indexes, Japan

Price indexes, Canada: computers in IPPI, 446,45 1-52: goods changing pricing sta- tus ( 198 1-86), 446-5 1 ; Industrial Prod- uct Price Index, 443-46

Price indexes, constant-quality: CPI as, 382; demand-supply computing capacity model, 337-40; information in, 330

Price indexes, elementary: bias in, 433; de- fined, 424; time reversal test, 426

Price indexes, traditional: for light. 44-45,

Point-of-Purchase Survey (POPS); Bureau of

Price change: COL and Laspcyrcs indexes

493 Subject Index

5 1-54; measurement by, 40-4 1 ; price measurement by, 39-45; treatment of quality and technological change, 55-57

Price indexes, true: construction of, 45-5 1; of light, 51-54; measurement by, 40

Prices: antiulcer drug market elasticities, 307- 10, 312; comparison of traditional and true price of light, 51,54-55; computing capacity demand and supply models, 336-37; CPI comparison of new and old, 382; data aggregation at elementary level, 424-27; endogeneity in product substitutability, 240-42; evolution of au- tomobile, 77-79; factors in antiulcer drug market, 295-304; factors in decline of mainframe computer, 331-34; Ford and all models quality-adjusted, 92; imputa- tion of new good, 439; installed base of computer systems, 342-46; levels of mainframe computers (1968-8 I), 33 1-34; lighting price bias, 43-44; light- ing technologies, 3 1-38; Nash-Bertrand pricing concept, 23 I-34,244; of new goods before they exist (Hicks), 211; of new products, 377-78; quality-adjusted automobile (1906-40), 85-91; relation of new to old goods, 440-41; traditional measurement of lighting, 39-45; tradi- tional, of light, 51; upward bias, 41. See also Sellers’ prices

Pricing: of computing equipment in Canada, 452; hedonic approach to new goods, 442; impact of new good on, 245-46; Ja- pan’s DWPI, 458; monopoly pricing of new good, 110-1 1 ; of new goods in Cana- da’s IPPI, 444-46; policies of antiulcer drug market, 312; status changes for prin- cipal commodity groups, Canada, 4 4 - 5 1. See also Hedonic pricing

Principal commodity groups (PCGs), Canada: price indexes in IPPI, 443-44; prices and pricing status, 445-5 1

sampling, 401-2 Probability-proportional-to-size (PPS), BLS

Probability theory, 155 Producer price indexes. See Domestic Whole-

sale Price Index (DWPI), Japan; Indus- trial Product Price Index (IPPI), Canada

Producer price index (PPI), 432 Producer’s surplus, 10-11, 114, 133 Production: of goods and services, 110; of

Production function, computer industry, 364 Productivity: effect of air-conditioning on,

knowledge, I10

129-30; influence of temperature on la- bor, 122-24.136-37; influence of temper- ature on total, 136; slowdown (1970s), 109-10

Products: CPI price and quality differentia- tion, 382-86; differentiation using CES utility function, 230-31; life cycle, 116- 21, 133; measuring degree of substitut- ability, 240-42; as perfect substitutes, 15-16; service characteristics delivered by, 42-43; uniqueness of, 15; vertical quality differentiation, 33 1. See also Entry-level items (ELIs)

116-21; chaining for price index incorpo- ration, 397; CPI introduction as new cate- gory, 24, 387-88; CPI introduction of, 376-88; CPI response to replacement, supplemental, and entirely new, 376-78; CPI sample rotation method, 386-87; CPI substitution procedure, 381-86; de- fining, 110; differences in effect on CPI, 376-78; frequency of substitution in CPI groups, 385-86; omission from U.S. im- port price index, 249,270-71,273; pat- ented inventions as, 132; in price index construction, 397; proprietary, 243. See also Goods, new

Public policy: health-related public projects, 149-50, 202; measures related to disease, 177-78, 183-86.202

Products, new: adoption or diffusion of,

Quality: attributes as indicators of, 79; comput- ers, 345,347; CPI adjustment, 382-83; CPI product differentiation by, 382-86; traditional price indexes, 55-57. See also Price indexes, constant-quality

Quality change: BLS treatment of, 377, 382- 83, 386; in Japan’s DWPI, 463-64; mea- surement for traditional indexes, 55-56; measurement of, 57-60, 67-68; in price index construction, 41-43; quality- adjusted automobile prices, 19, 76-77, 84-91; reporting by hedonic pricing, 15-16; as source of new goods, 440-41

Rationing, new and disappearing goods,

RTE cereal industry. See Cereal industry, 112-13

ready-to-eat

Sample rotation, CPI, 386-87 Sanitary movement: influence of, 154-56;

494 Subject Index

Sanitary movement (cont.) influence of germ theory of disease, 157-86; persuasion techniques, 156-57

Sauerbeck index, 403,406,408-9,432 Segmentation: brands of ready-to-eat cereal,

220-28; family demand in new-brand ce- real choice model, 217-23

Sellers: consumer substitution among, 404-6; rates of price change in a market, 398; se- lection for CPI component indexes, 400-403

Sellers’ prices: in Laspeyres component index, 399; trend reversion in, 398, 405-7; use of geometric means of, 409-10

Shadow or reservation price, 21 1 Soap industry, 174-76 Software industry, 332 Spillovers, antiulcer drug market, 311 Statistics: political use of, 154; used by sani-

tary movement, 154-56. See also Proba- bility theory

Statistics Canada, 45 1-52 Substitutability: estimating degree of product,

239-42 Substitutions: bias in Laspeyres component in-

dexes, 403-5; brand choice in ready-to- eat cereal model, 22, 216-29, 238-42; by consumers, 398-99; CPI treatment of product, 382-83; newly introduced goods as, 15; of new products in U.S. CPI, 24- 25. See also Constant elasticity of substi- tution (CES)

Supply: computing capacity supply model,

System of national accounts (SNA), United 336-37,345,347-51

States, 474-75

Technological change: computer industry, 362-64; mainframe computing market (1968-81), 33 1-34; measurement of, 57-60; nonmainframe computers ( 1 968- 8l), 333-34; treatment in traditional price indexes, 56-57

Technology: antiulcer drug H2-receptor antago- nist, 277-78, 280, 298-310, 314-21; cap- tured in price indexes, 55: changes in au- tomobile, 72-73; changes in water

supply, 168-73; characteristics approach to new, 68-70; conventional treatment of changes in, 56-60; evolution of lighting, 31-38; hedonic methods with sharp change in, 77; impact of air-conditioning, 20-2 1, 12 1-33; progress at household level, 145-46

Technology, best-practice: competing ideas of health-related, 152; difference between individual and real ( E ) , 147-52, 156, 165, 167; diffusion among firms and house- holds, 153; effect of changes in, 156; health-related (A) , 147-52; persuasion to accept, 157-60, 165

Timesharing, 333

Ulcer drugs. See Antiulcer drugs Ulcer treatment, 279-82 United Nations International Comparison Pro-

gramme (ICP), 474

Value: creation in computer industry, 334; of innovations, 116-21; of inventions, 114; measurement of new goods’, 13-16; of new goods, 21 1-13, 237-38; of new goods under perfect competition, 211-13. See also Consumer’s surplus; Producer’s surplus

Wages, real: measurement bias in, 60; mea- surement of, 55; relation to decline of in- fant mortality, 186-88

462-63; effect of using wrong, 40-41 ; in Japan’s DWPI, 466-69; of new goods in Canada’s IPPI, 444-46; for new goods in Japan’s DWPI (1990), 459-64

Welfare gains: with mortality decline, 190-96, 203-4

Wholesale price indexes, Japan: components, weights, and new goods, 457; input- output price indexes in, 464-65; revision schedule, 464

Willingness to pay: demand-based assess- ments, 12; for new computer capabilities, 334-36; for product extensions, 330

Weights: changes in Japan’s DWPI (1990),

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