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Need help calculating portion of US productivity tied to house bubble

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Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-17-04 12:48 AM
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Need help calculating portion of US productivity tied to house bubble
Edited on Wed Mar-17-04 01:22 AM by DanSpillane
Hi Folks

I keep hearing about how technology is what is boosting US productivity numbers, but I am wondering if there isn't more going on.

Are rising US new house prices turning into "productivity gains"?

Think hard!

While determining GDP, GNP and inflation calculations is fairly straightforward, I have not yet been able to figure out what relative proportion residential fixed investment (which creates new homes)contributes to recent US productivity reports.

More specifically, I am looking to determine how the calculation of productivity relates to average new home price--residential investment--apparently absent a deflator like other GDP categories; it looks to me like they use owners equivalent rent like in the CPI!

Granted, if parts of homes are built in other countries and shipped over here, that would be a boost in itself.

Thus, it seems to me productivity figures in quarters where many new homes were built would be fully imaginary.

Someone help me out, or counter-argue as to how rising home prices are not otherwise reported as productivity gains, assuming fixed input quarter over quarter...
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