Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market

Steven Berry (), James Levinsohn and Ariel Pakes

Journal of Political Economy, 2004, vol. 112, issue 1, pages 68-105

Abstract: 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.

Date: 2004
View citations in EconPapers

Downloads: (external link)
http://www.journals.uchicago.edu/cgi-bin/resolve?JPE112102PDF main text (application/pdf)
A link to the University of Chicago Press online edition may require you to be a subscriber to this journal to access the full text, unless the article is not yet subject to access control.

Related works:
Working Paper: Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market (2001)
Working Paper: Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ucp:jpolec:v:112:y:2004:i:1:p:68-105

Ordering information: This journal article can be ordered from
http://www.journals.uchicago.edu/JPE/order1.html

Access Statistics for this article

Journal of Political Economy is edited by Steven D. Levitt, MONIKA PIAZZESI, CANICE PRENDERGAST and ROBERT SHIMER

More articles in Journal of Political Economy from University of Chicago Press
Address: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Series data maintained by Christopher F. Baum ().