Hedonic Prices Indexes for New Passenger Cars in Portugal (1997-2001)
In this paper we study the effects of quality change on the price index for new passenger cars in Portugal for the years 1997-2001. Hedonic regression models are studied, giving particular emphasis to the relation between the form of the price index and the specification of the hedonic equation and estimation method used. The results indicate that the CPI component correponding to this item may have been overestimated by as much as 2.2 percentage points per year. This corresponds to an overestimation of the overall CPI by about 0.15 percentage points per year. As a by-product of the analysis it is also possible to conclude that the the quality of new cars sold in Portugal increased on average 4.8 per cent per year during this period.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 21 321 32 00
Fax: 21 346 48 43
Web page: http://www.bportugal.ptEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Victor GINSBURGH & Geneviève VANHAMME, 1989.
"Price Differences in the EC Car Market. Some Further Results,"
Annales d'Economie et de Statistique,
ENSAE, issue 15-16, pages 137-149.
- Victor Ginsburgh & Geneviève Vanhamme, 1989. "Price differences in the EC car market: some further results," ULB Institutional Repository 2013/1737, ULB -- Universite Libre de Bruxelles.
- Moch, Dietmar, 2001. "Price indices for information and communication technology industries: an application to the German PC market," ZEW Discussion Papers 01-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Arguea, N.M. & Hsiao, C., 1992.
"Econometric Issues of Estimating Hedonic Price Functions- with an Application to the U.S. Market for Automobiles,"
9203, Southern California - Department of Economics.
- Arguea, Nestor M. & Hsiao, Cheng, 1993. "Econometric issues of estimating hedonic price functions : With an application to the U.S. market for automobiles," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 243-267, March.
- Teekens, R & Koerts, J, 1972. "Some Statistical Implications of the Log Transformation of Multiplicative Models," Econometrica, Econometric Society, vol. 40(5), pages 793-819, September.
- repec:cup:cbooks:9780521296762 is not listed on IDEAS
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Yves Bourdet, 1991. "Pricing policy and quality upgrading in the Swedish car market: Do import surveillance and exchange rate instability matter?," Open Economies Review, Springer, vol. 2(3), pages 255-274, October.
- Epple, Dennis, 1987. "Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 59-80, February.
- Atkinson, Scott E & Halvorsen, Robert, 1984. "A New Hedonic Technique for Estimating Attribute Demand: An Application to the Demand for Automobile Fuel Efficiency," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 417-26, August.
- Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September.
- Olympia Bover & Mario Izquierdo, 2003. "Quality-adjusted prices: hedonic methods and implications for national accounts," Investigaciones Economicas, Fundación SEPI, vol. 27(2), pages 199-238, May.
- White, Halbert, 1980. "Using Least Squares to Approximate Unknown Regression Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 149-70, February.
- Cowling, Keith & Cubbin, John, 1972. "Hedonic Price Indexes for United Kingdom Cars," Economic Journal, Royal Economic Society, vol. 82(327), pages 963-78, September.
- Franklin M. Fisher & Zvi Griliches & Carl Kaysen, 1962. "The Costs of Automobile Model Changes since 1949," Journal of Political Economy, University of Chicago Press, vol. 70, pages 433.
- Mertens, Yves & Ginsburgh, Victor, 1985.
"Product Differentiation and Price Discrimination in the European Community: The Case of Automobiles,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 34(2), pages 151-66, December.
- MERTENS, Yves & GINSBURGH, Victor, . "Product differentiation and price discrimination in the European Community: The case of automobiles," CORE Discussion Papers RP -672, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Machado, Jos A.F. & Santos Silva, J.M.C., 2006. "A Note On Identification With Averaged Data," Econometric Theory, Cambridge University Press, vol. 22(03), pages 537-541, June.
- Hoffmann, Johannes & Kurz, Claudia, 2002.
"Rent indices for housing in West Germany 1985 to 1998,"
Discussion Paper Series 1: Economic Studies
2002,01, Deutsche Bundesbank, Research Centre.
- Hoffmann, Johannes & Kurz, Claudia, 2002. "Rent indices for housing in West Germany 1985 to 1998," Working Paper Series 0116, European Central Bank.
- Kenneth Brown, 2000. "Hedonic price indexes and the distribution of buyers across the product space: an application to mainframe computers," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1801-1808.
- Agarwal, Manoj K & Ratchford, Brian T, 1980. " Estimating Demand Functions for Product Characteristics: The Case of Automobiles," Journal of Consumer Research, University of Chicago Press, vol. 7(3), pages 249-62, December.
- Charles L. Schultze, 2003. "The Consumer Price Index: Conceptual Issues and Practical Suggestions," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 3-22, Winter.
- Arguea, N M & Hsiao, C & Taylor, G A, 1994.
"Estimating Consumer Preferences Using Market Data--An Application to U.S. Automobile Demand,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 9(1), pages 1-18, Jan.-Marc.
- Arguea, N.M. & Hsiao, C. & Taylor, G.A., 1993. "Estimating Consumer Preferences Using Market Data - An Application to U.S. Automobile Demand," Papers 9316, Southern California - Department of Economics.
- Wynne, Mark A. & Rodriguez-Palenzuela, Diego, 2002.
"Measurement bias in the HICP: what do we know, and what do we need to know?,"
Working Paper Series
0131, European Central Bank.
- Mark A. Wynne & Diego Rodriguez-Palenzuela, 2004. "Measurement Bias in the HICP: What do we know and What do we need to know?," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 79-112, 02.
- Mark A. Wynne & Diego Rodriguez-Palenzuela, 2002. "Measurement bias in the HICP: what do we know and what do we need to know?," Working Papers 0206, Federal Reserve Bank of Dallas.
- Godfrey, Leslie G & McAleer, Michael & McKenzie, Colin R, 1988. "Variable Addition and LaGrange Multiplier Tests for Linear and Logarithmic Regression Models," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 492-503, August.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Zvi Griliches, 1964. "Notes on the Measurement of Price and Quality Changes," NBER Chapters, in: Models of Income Determination, pages 381-418 National Bureau of Economic Research, Inc.
- Ariel Pakes, 2003.
"A Reconsideration of Hedonic Price Indexes with an Application to PC's,"
American Economic Review,
American Economic Association, vol. 93(5), pages 1578-1596, December.
- Ariel Pakes, 2002. "A Reconsideration of Hedonic Price Indices with an Application to PC's," NBER Working Papers 8715, National Bureau of Economic Research, Inc.
- Ohta, Makoto & Griliches, Zvi, 1986. "Automobile Prices and Quality: Did the Gasoline Price Increases Change Consumer Tastes in the U.S.?," Journal of Business & Economic Statistics, American Statistical Association, vol. 4(2), pages 187-98, April.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February.
- Wooldridge, Jeffrey M., 1991. "On the application of robust, regression- based diagnostics to models of conditional means and conditional variances," Journal of Econometrics, Elsevier, vol. 47(1), pages 5-46, January.
- Bover, Olympia & Velilla, Pilar, 2002.
"Hedonic house prices without characteristics: the case of new multiunit housing,"
Working Paper Series
0117, European Central Bank.
- Bover, Olympia & Velilla Lucini, Pilar, 2002. "Hedonic House Prices Without Characteristics: The Case of New Multiunit Housing," CEPR Discussion Papers 3161, C.E.P.R. Discussion Papers.
- Triplett, Jack E, 1969. "Automobiles and Hedonic Quality Measurement," Journal of Political Economy, University of Chicago Press, vol. 77(3), pages 408-17, May/June.
- Laura Blow & Ian Crawford, 1998. "A quality-constant price index for new cars in the UK, 1986 to 1995," IFS Working Papers W98/12, Institute for Fiscal Studies.
When requesting a correction, please mention this item's handle: RePEc:ptu:wpaper:w200210. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEE-NTDD)
If references are entirely missing, you can add them using this form.