Consumer Demand with Unobservable Product Attributes - Part II: Inference
AbstractIn this paper we discuss statistical inference associated with the theoretical model developed in Part I. Specifically, we demonstrate how the relationship between the distribution of prices and unit values can be exploited to estimate some of the structural parameters. These estimates are essential for constructing price indexes that account for unobservable taste-shifters and quality/location attributes. Finally, the remaining structural parameters can be estimated from data on demand by inserting the price indexes into the corresponding demand system. Finally, we discuss the estimation procedure in the discrete case when consumers choose one unit of a variant at a time.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 167.
Date of creation: Feb 1996
Date of revision:
Price indexes; differentiated products; quasi-maximum likelihood; quality and location attributes.;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
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- Leif Brubakk & John K. Dagsvik, 1998. "Consumer Demand and Unobservable Product Attributes," Discussion Papers 223, Research Department of Statistics Norway.
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