Everything all the time? Re-evaluating the gains from varieties

Miklós Koren and Roc Armenter ()

No 655, 2011 Meeting Papers from Society for Economic Dynamics

Abstract: Sample zeros---products available that do not register positive revenues due to the finite sample period---introduce several biases in the computation of the import price index developed by Feenstra (1994). We model sample zeros by considering the discrete choice model of Anderson, De Palma and Thisse (1987) with a finite number of consumers/orders. We show that there is a small upward bias when the number of orders is constant across periods. When the number of orders grows over time there is a possibly large downward bias. We illustrate both cases for the import categories and sample period analyzed in Feenstra (1994).

Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:red:sed011:655

Access Statistics for this paper

More papers in 2011 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().