In neoclassical models of consumption choice under earnings uncertainty changes in consumption programs from one period to the next are determined by new information received about future earnings over the period. This proposition suggests that actual consumption choices imbed extractable...

The paper begins by explaining the rational for the use of hedonic price indexes. It then reviews the problems that in the past have been associated with incorporating hedonics in the Consumer Price Index. The paper shows that many of those problems can now be overcome, though some care in...