Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market
In this paper, we consider how rich sources of information on consumer choice can help to identify demand parameters in a widely used class of differentiated products demand models. Most important, we show how to use “second†choice†data on automotive purchases to obtain good estimates of substitution patterns in the automobile industry. We use our estimates to make out†of†sample predictions about important recent changes in industry structure.
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| Length: | |
| Date of creation: | 2004 |
| Publication status: | Published in Journal of Political Economy -Chicago- |
| Handle: | RePEc:hrv:faseco:3436404 |
| Contact details of provider: | Postal: Littauer Center, Cambridge, MA 02138 Phone: 617-495-2144 Fax: 617-495-7730 Web page: http://www.economics.harvard.edu/ More information through EDIRC
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