Een prijsindex van nieuwe personenauto's, 1950–1965

Summary In constructing a price index of new motorcars the main problem is how to deal with the introduction of new models and with quality variation generally. The first difficulty is turned by compiling year‐to‐year indices based on models that each account for 2 per cent or more of total sales in either year. The shifting basis of these indices comprises from 7 to 15 models which together account for 45 to 70 per cent of total registrations. All models are subject to minor improvements; this quality variation is taken into account by representing increases in horse power and overall length by equivalent price reductions. The elasticity coefficients involved in this translation are derived from a cross section analysis of prices and technical characteristics of some fifty widely ranging models in 1964. A price index for the period from 1950 to 1965 is then obtained by linking successive year‐to‐year indices. Over the whole period list prices have risen by a third, to a large extent as the result of changes in purchase tax; this price rise is just about offset by imporvements in quality of some 2 per cent per annum.