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Quantifying Quality Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Mark Bils
Peter J. Klenow
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Using U.S. Consumer Expenditure Surveys, we estimate "quality Engel curves" for 66 durable goods based on the extent richer households pay more for each good. The same data show that the average price paid rises faster from 1980 to 1996 for goods with steeper quality Engel curves, as if households are ascending these curves. BLS prices likewise increase more quickly for goods with steeper quality Engel curves, suggesting the BLS does not fully net out the impact of quality upgrading. We estimate that annual quality growth averages 3.7 percent for our goods, with 2.2 percent showing up as higher inflation.
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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 91 (2001)
Issue (Month): 4 (September)
Pages: 1006-1030
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Handle: RePEc:aea:aecrev:v:91:y:2001:i:4:p:1006-1030Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
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