Editing Hedonic regression (section)

==Criticisms of hedonic models==
Some commentators, including [[Austrian economists]], have criticized the US government's use of hedonic regression in computing its CPI, fearing it can be used to mask the "true" inflation rate and thus lower the interest it must pay on [[Treasury Inflation-Protected Securities]] (TIPS) and [[Social Security (United States)|Social Security]] cost of living adjustments.<ref>See, for example, {{cite web|url=http://www.von-der-lippe.org/dokumente/hedon-vdl.pdf |first=Peter von der |last=Lippe |title=Some Conservative Comments on Hedonic Methods |year=2001 }}</ref>

The same use of hedonic models when analyzing consumer prices in other countries, however, has shown that non-hedonic methods may ''themselves'' misstate inflation over time by failing to take quality changes into account.<ref>See, for example, {{cite journal |last1=Reis |first1=Hugo J. |last2=Silva |first2=J. M. C. Santos |title=Hedonic Price Indexes for New Passenger Cars in Portugal (1997–2003) |journal=Economic Modelling  |volume=23 |issue=6 |year=2006 |pages=890–906 |doi=10.1016/j.econmod.2006.04.003 |hdl=10400.5/24358 |url=https://www.bportugal.pt/sites/default/files/anexos/papers/wp200210.pdf }}</ref>