increase in memory size, CPU) that exist between the replaced computer/printer and the replacement.Ī quality adjustment technique is needed that resolves these two issues.įrom September 2019, the quality adjustment technique of Hedonic Regression is used when there is a need to have replacement computers and printers in the sample. Bridged overlap does not consider the quality changes (e.g.Using bridged overlap with products exhibiting this pattern can lead to a downward bias in the index. This pattern is repeated with the replacement. At this point they are replaced in our sample by another computer/printer at full price. Computers and printers are often introduced to the market at their full price and leave the market at a sale price.There are two reasons to think that bridged overlap is not the most suitable method of quality adjustment for computers and printers. For a price observation to be brought into the index, it must be available for two consecutive periods. The price change between the two observations is imputed as the average change for the other matched price observations for computers. Using the bridged overlap technique, no price comparison is made between the two computers when the replacement is brought into the index. When a specific computer priced in a retail outlet is no longer available, a replacement must be found to continue the measure of price change. The method used up to August 2019 for computers and printers is called Bridged Overlap. There are different methods of quality adjustment and it is important to choose the method most suitable to the item being priced. The problem of how to calculate the change of price between the old and new product when we make a replacement is known as Quality Adjustment. ![]() These replacements happen frequently for computers and printers where there is a rapid turnover of what is being sold. When a computer or printer is no longer available, it is replaced in the sample and the new computer or printer is priced each month after this until it too needs replacing. The index for Accessories for information processing equipment is calculated by pricing the same sample of printers each month and calculating the relative change in price using a geometric average of the individual price changes. The index for Personal Computers is calculated by pricing the same sample of laptop and desktop computers each month and calculating the relative change in price using a geometric average of the individual price changes. Open in Excel: Methodology change for Computers and Printers Table (XLS 9KB) Method up to August 2019
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