search query: @author Walker, J. / total: 11
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| Author: | Requena-Silvente, F. Walker, J. |
| Title: | Calculating hedonic price indices with unobserved product attributes: An application to the UK car market |
| Journal: | Economica
2006 : VOL. 73:291, p. 509-532 |
| Index terms: | car industry markets brands products prices models regression analysis United Kingdom |
| Language: | eng |
| Abstract: | This study shows that hedonic price indices omitting model-specific unobservable (here as: un-obs.) product attributes are subject to considerable bias. Utilized is a complete panel of new car versions marketed in the U.K. from 1971 to 1998 incorporating more than 100 observable product characteristics (as: chars.), sales weighting to capture the distribution of purchases across models, and model-specific fixed effects to account for un-obs. chars. It is found that quality-adjusted prices (here as: q-a-prs.) obtained from hedonic regressions not accounting for un-obs. chars. exhibit a severe downward bias. It is also shown that q-a-prs. exhibit distinct sub-market differences having increased in 'mass production' segments and decreased in 'specialized niches'. |
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