What you do have are entirely new applications -- multimedia stuff, voice recognition, .... Of course, you cannot calculate efficiency gains when you more to a whole new category.
Doug Henwood wrote:
> I'm reading a lot of stuff on the alleged productivity boom for the
> New Economy book, and the enthusiasts are saying that official price
> indexes are greatly understating the improvement in software quality
> (i.e., the price indexes should be falling faster than they are). The
> hardware price indexes are falling at a 20-30% annual rate, and it's
> argued that software indexes should be more like that, and less like
> the 2-5% annual average drop the official numbers report.
> Since there are quite a few hardware and software experts on this
> list, I'm wondering what you all think. Is software quality improving
> vastly? And is the actual performance of computers - their output,
> whatever that is - really increasing at the kind of speed suggested
> by the price indexes (or, even more extravagantly, by Moore's law)?
> Or is a lot of the speed and power increase just taken up by bells
> and whistles?
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu