I should know this. How does real estate changing hands at higher prices show up in measured GDP?
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Replying to @CarterPaddy
Isn't it via rents, and imputed rents for homeowners?
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Replying to @MForstater
Ta! So if you think the real qual adjusted quantity of 'housing services' not changing, just prices, real GDP wrongly measured as rising?
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Replying to @CarterPaddy
Yes. But on other side also doesn't capture technology driving down quality/price of other stuff http://www.nber.org/chapters/c6064.pdf …
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Replying to @MForstater @CarterPaddy
(is there a theory/ mechanism of how these two effects relate I wonder?)
5:02 AM - 12 May 2017
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