But over time, and particularly during the last decade or two, an ever-increasing share of GDP has reflected the value of ideas more than material substance or manual labor input. This ongoing development is imposing significant stress on our statistical systems. We know, presumably uniquely, the dollar value of a software application.
But when comparing software-application values over time, how much of the change is volume and how much is price? The answer, in principle, requires judgments about very fundamental issues in measurement: What are the underlying determinants of consumer value preference, and how does this good or service contribute to that preference, taking account of all the other goods and services being consumed?