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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Year of publication:	2004
Authors:	Berry, Steven ; Levinsohn, James ; Pakes, Ariel
Published in:	Journal of Political Economy. - University of Chicago Press. - Vol. 112.2004, 1, p. 68-105
Publisher:	University of Chicago Press

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005833698