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Federal Reserve Bank of San Francisco
Working Paper Series
Prices for local area network equipment
Mark Doms
Chris Forman

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.

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Mark Doms & Chris Forman, Prices for local area network equipment, Federal Reserve Bank of San Francisco, Working Paper Series 2003-13, 2003.
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Keywords: High technology industries ; Prices ; Computers
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