Prices for Local Area Network Equipment

FRB of San Francisco Working Paper No. 2003-13

39 Pages Posted: 27 May 2004

See all articles by Mark E. Doms

Mark E. Doms

Federal Reserve Bank of San Francisco

Chris Forman

Cornell University - Charles H. Dyson School of Applied Economics and Management; Cornell SC Johnson College of Business

Date Written: June 2003

Abstract

In this paper we examine quality-adjusted prices for local area network (LAN) equipment. Hedonic regressions are used to estimate price changes for the two largest classes of LAN equipment, routers and switches. A matched model was used for LAN cards and the prices for hubs were inferred by using an economic relationship to switches. Overall, we find that prices for the four groups of LAN equipment fell at a 17 percent annual rate between 1995 and 2000. These results stand in sharp contrast to the PPI for communications equipment that is nearly flat over the 1990s.

Keywords: High technology industries, prices, computers, price index, hedonic, communications equipment

JEL Classification: L63, O3

Suggested Citation

Doms, Mark E. and Forman, Chris, Prices for Local Area Network Equipment (June 2003). FRB of San Francisco Working Paper No. 2003-13, Available at SSRN: https://ssrn.com/abstract=550401 or http://dx.doi.org/10.2139/ssrn.550401

Mark E. Doms (Contact Author)

Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States

Chris Forman

Cornell University - Charles H. Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Cornell SC Johnson College of Business ( email )

Ithaca, NY 14850
United States

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