Implicit prices

GJ in 2001 dollars (using the U.S. GDP implicit price deflator). The relationship between the... 

The GNP values shown in Table 2.3 are expressed in dollars for the year calculated. When current dollars are used to measure economic activity, however, real growth is obscured by the effects of inflation, which decrease the real worth of the dollar. To correct the GDP for inflationary effects, price indexes using 1987 prices as the base year are computed by the Department of Commerce. The components of GNP are then converted into constant dollars by using the appropriate price index. In Table 2.4 the GNP has been corrected for the effects of inflation. The GNP deflator is an implicit price deflator derived from the rate of inflation. 

Figures are based on a total of 133 firms listed in the Compustat file under Standard Industrial Code (SIC) code 2834 in at least 1 year between 1971 and 1990. The number of firms vary from year to year due to firms entry and exit from SIC 2834. b Adjusted by GNP implicit price deflator. 

Federal sources of R D funds to companies are excluded in this year, d Adjusted by GNP implicit price deflator. 

Inflation adjustments were made using the GNP implicit price deflator. 

NOTE All crests were adjusted using the GNP implicit price deflator. Facilities surveyed were Charles River, Taconlc Farms, and Hazleton. These facilities focus on breeding only. Although Hazelton conducts testing, it is carried out in a separate division. 

Sales were reported to OTA in current dollars, but OTA converted them to constant 1990 dollars using the GNP implicit price deflator. OTA had 11 years of data which allowed examination of sales over a 14-year period relative to the year of patent expiration. Data on each compound were aligned according to the year of patent expiration. For example, sales in the first year after patent expiration for compounds whose patents expired in 1984 were those reported in 1985, whereas sales in the first year after patent expiration for compounds whose patents expired in 1987 were those reported in 1988. Thus, 1988 inflation-adjusted sales for the 1987 drugs were combined with 1985 inflation-adjusted sales of the 1984 drugs to obtain inflation-adjusted sales 1 year after patent expiration for the entire sample. 

One possibility may be to have the profit function as a point of departure. This function relates prices of inputs and outputs to maximum profits (see, for example, Varian, 1992, pp. 40-5). This would suggest that an empirical version of v can be defined in terms of the maize price, the implicit prices (shadow prices) of herbicide characteristics, i.e. the derivatives of the hedonic price function with respect to each characteristic, and other input prices. In other words, the basis for the empirical version of v would be ... 

While you can go to the grocery store or look in the newspaper to learn the price of eggs, the price of extra workplace safety is implicit in the wage structure. The hedonic wage equation (1.2) not only describes the labor market in equilibrium but its parameter estimates are also what the econometrician must use to compute the implicit price of workplace safety, which is then used as an independent... 

Note Adjusted to 1987 constant dollars, using US Dept, of Comn>erce GNP implicit price deflator... 

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