CFDP 1337
Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market
Author(s):Publication Date: November 2001
Pages: 35
Abstract:
In this paper we provide an algorithm for estimating characteristic based demand models from alternative data sources, and apply it to new data on the market for passenger vehicles. We find that, provided care is taken in constructing the demand system and rich enough data are available, the characteristic based model can both rationalize existing results and provide realistic out of sample predictions.
Keywords:
Product Differentiation, Autos, Demand Estimation
JEL Classification Codes: D43
Note:
Published in Journal of Political Economy (2004), 112(1): 68-104 [JSTOR]