Car quality improvements and price indices in Spain
The main goals of this study are to measure quality improvements in automobile sector in Spain and to estimate the quality bias in car price index released by INE. In order to do that, we propose an alternative methodology to estimate hedonic regressions. This methodology involves classifying the "indicators" of quality of an automobile in "sub-indices" that reflect different aspects of quality, subsequently grouping the sub-indices in an overall quality index. Consequently, car quality can be measured by a readily interpretable index; and its price can be estimated with statistical accuracy in an hedonic regression where the overall quality index is used as regressor. Results indicate that the implicit quality bias in the car price index released by INE is 3.1 % per year.
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- Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, October.
- Salvador Barrios & Juan Jose Lucio, 2003.
"Economic Integration and Regional Business Cycles: Evidence from the Iberian Regions,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 65(4), pages 497-515, 09.
- BARRIOS, Salvador & DE LUCIO, Juan José, . "Economic integration and regional business cycles: evidence from the Iberian regions," CORE Discussion Papers RP -1655, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BARRIOS, Salvador & de LUCIO, Juan José, 2002. "Economic integration and regional business cycles: Evidence from the Iberian regions," CORE Discussion Papers 2002073, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gordon, Robert J., 1990. "The Measurement of Durable Goods Prices," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226304557, July.
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