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Price-Quality Relations and Hedonic Price Indexes for Cars in the United Kingdom

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Author Info
JONATHAN MURRAY
Abstract

The main objective of this paper is to employ a complete set of panel data on UK car characteristics to estimate a hedonic car price model. This enables us to examine price differences between various car models in terms of variations in individual car characteristics.We also pay greater attention to the specification of the hedonic price model than previous studies, as shown by the wide range of diagnostics reported. A second objective of the paper is to utilise the estimates of the hedonic price model to construct a hedonic price index for cars, which allows us to investigate the increase of car prices due to quality and non-quality factors.

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Article provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 6 (1999)
Issue (Month): 1 (February)
Pages: 5-27
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Handle: RePEc:taf:ijecbs:v:6:y:1999:i:1:p:5-27

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Related research
Keywords: Hedonic Prices Quality Cars;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Feenstra, R.C., 1995. "Exact Hedonic Price Indexes," Department of Economics 95-11, California Davis - Department of Economics.
    Other versions:
  2. Arguea, N M & Hsiao, C & Taylor, G A, 1994. "Estimating Consumer Preferences Using Market Data--An Application to U.S. Automobile Demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(1), pages 1-18, Jan.-Marc. [Downloadable!] (restricted)
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  3. Thompson, R S, 1988. "Product Differentiation in the Newspaper Industry: An Hedonic Price Approach," Applied Economics, Taylor and Francis Journals, vol. 20(3), pages 367-76, March.
  4. Bajic, Vladimir, 1993. "Automobiles and Implicit Markets: An Estimate of a Structural Demand Model for Automobile Characteristics," Applied Economics, Taylor and Francis Journals, vol. 25(4), pages 541-51, April.
  5. Epple, Dennis, 1987. "Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 59-80, February. [Downloadable!] (restricted)
  6. Leech, Dennis & Cubbin, J, 1978. "Import Penetration in the U.K. Passenger Car Market: A Cross-Section Study," Applied Economics, Taylor and Francis Journals, vol. 10(4), pages 289-303, December.
  7. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February. [Downloadable!] (restricted)
  8. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1.
  9. Christos Ioannidis & Mick Silver, 1999. "Estimating exact hedonic indexes: An application to UK television sets," Journal of Economics, Springer, vol. 69(1), pages 71-94, February. [Downloadable!] (restricted)
  10. Cowling, Keith & Cubbin, John, 1972. "Hedonic Price Indexes for United Kingdom Cars," Economic Journal, Royal Economic Society, vol. 82(327), pages 963-78, September. [Downloadable!] (restricted)
  11. Atkinson, Scott E & Halvorsen, Robert, 1984. "A New Hedonic Technique for Estimating Attribute Demand: An Application to the Demand for Automobile Fuel Efficiency," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 417-26, August. [Downloadable!] (restricted)
  12. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November. [Downloadable!] (restricted)
  13. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May. [Downloadable!] (restricted)
  14. Hogarty, Thomas F, 1975. "Price-Quality Relations for Automobiles: A New Approach," Applied Economics, Taylor and Francis Journals, vol. 7(1), pages 41-51, March.
  15. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael Beer, 2007. "Bootstrapping a hedonic price index: experience from used cars data," AStA Advances in Statistical Analysis, Springer, vol. 91(1), pages 77-92, March. [Downloadable!] (restricted)
    Other versions:
  2. Stefan Sebastian Fahrlaender, 2005. "Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties," Diskussionsschriften dp0507, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
    Other versions:
  3. Stefan S. Fahrlaender, 2006. "Indirect Construction of Hedonic Price Indexes: Empirical Evidence for Private Properties in Switzerland," Diskussionsschriften dp0601, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
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