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Quality Adjusted Prices for the American Automobile Industry: 1906-1940

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  • Raff, D.M.G.
  • Trajtenberg, M.

Abstract

We push the span of hedonic price calculations for automobiles backwards towards the industry's birth. Most of the real change that occurred between 1906 and 1982 occurred between 1906 and 1940. During these years, hedonic prices fell at an average annual rate of 5%. The pace was brisker still during the first 8-12 years. Our measured declines can be decomposed into price and quality components. Our calculations suggest that 60% of the overall decline 1906-1940 was due to process innovation and only 40% to product innovation or quality change per se. Regressors representing mechanical systems matter in these calculations.
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(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Raff, D.M.G. & Trajtenberg, M., 1995. "Quality Adjusted Prices for the American Automobile Industry: 1906-1940," Papers 10-95, Tel Aviv.
  • Handle: RePEc:fth:teavfo:10-95
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    Cited by:

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    5. Axhausen, K.W. & Froelich, P. & Tschopp, M., 2011. "Changes in Swiss accessibility since 1850," Research in Transportation Economics, Elsevier, vol. 31(1), pages 72-80.
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    10. Fonseca, Renato, 1999. "The Brazilian Automobile Industry in the 1980s: the Lost Decade?," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 53(1), January.

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    More about this item

    Keywords

    PRICES; AUTOMOBILE INDUSTRY;

    JEL classification:

    • N6 - Economic History - - Manufacturing and Construction
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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