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Hedonic Prices Indexes for New Passenger Cars in Portugal (1997-2001)

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  • Hugo J. Reis
  • J.M.C.Santos Silva

Abstract

In this paper we study the effects of quality change on the price index for new passenger cars in Portugal for the years 1997-2001. Hedonic regression models are studied, giving particular emphasis to the relation between the form of the price index and the specification of the hedonic equation and estimation method used. The results indicate that the CPI component correponding to this item may have been overestimated by as much as 2.2 percentage points per year. This corresponds to an overestimation of the overall CPI by about 0.15 percentage points per year. As a by-product of the analysis it is also possible to conclude that the the quality of new cars sold in Portugal increased on average 4.8 per cent per year during this period.

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Bibliographic Info

Article provided by Banco de Portugal, Economics and Research Department in its journal Economic Bulletin.

Volume (Year): (2002)
Issue (Month): ()
Pages:

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Handle: RePEc:ptu:bdpart:b200210

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Citations

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Cited by:
  1. Sylvain M. Prado, 2009. "The European used-car market at a glance: Hedonic resale price valuation in automotive leasing industry," Economics Bulletin, AccessEcon, vol. 29(3), pages 2086-2099.
  2. Varela-Irimia, Xosé-Luís, 2011. "Age effects, unobserved characteristics and hedonic price indexes: The Spanish car market in the 1990's," Working Papers 2072/169683, Universitat Rovira i Virgili, Department of Economics.
  3. Satoshi Nakano & Kazuhiko Nishimura, 2013. "Welfare gain from quality and price development in the Japan’s LCD TV market," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 889-908, September.

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