simpsonsshitposting

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Go on then (sh.itjust.works)

submitted 3 days ago by StarvingMartist@sh.itjust.works to c/simpsonsshitposting@sh.itjust.works

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[–] sp3ctr4l@lemmy.dbzer0.com 6 points 2 days ago (1 children)

So, the very complicated and expansive version of what you are talking about is Hedonics, Hedonic Adjustments... and lets just say it is so fucking technical and complicated that as I have said elsewhere in this thrrad, I basically have PTSD from trying to have detailed discussions about which elements of this are valid and to what extent they are valid.

Its not quite as simple and straightforwardly bullshit as you describe, but it also does functionally end up resulting in the general bullshit that you do describe... its just that quantifying the exact amount of bullshit happening, due to illegitimate hedonic adjustments... is a statistical and accounting nightmare.

[–] booly@sh.itjust.works 2 points 2 days ago

Wouldn't hedonic adjustments go the other direction from what the parent comment is saying? If the quality goes down, then the adjustment should increase the stated inflation.

I read the parent comment as talking about substitution effects in consumer behavior, but the CPI doesn't reweight month to month (it used to only adjust once every few years, but has recently switched to once a year).

So generally, substitution bias makes the CPI overstate the inflation as actually experienced by the typical household.