Quality Adjustment at Scale: Hedonic vs. Exact Demand-Based Price Indices / Gabriel Ehrlich, John C. Haltiwanger, Ron S. Jarmin, David Johnson, Ed Olivares, Luke W. Pardue, Matthew D. Shapiro, Laura Zhao.

Format:

Book

Author/Creator:

Ehrlich, Gabriel.

Contributor:

National Bureau of Economic Research.

Haltiwanger, John C.

Jarmin, Ron S.

Johnson, David.

Olivares, Ed.

Pardue, Luke W.

Shapiro, Matthew D.

Zhao, Laura.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31309.

NBER working paper series no. w31309

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

This paper explores alternative methods for adjusting price indices for quality change at scale. These methods can be applied to large-scale item-level transactions data that includes information on prices, quantities, and item attributes. The hedonic methods can take into account the changing valuations of both observable and unobservable characteristics in the presence of product turnover. The paper also considers demand-based approaches that take into account changing product quality from product turnover and changing appeal of continuing products. The paper provides evidence of substantial quality-adjustment in prices for a wide range of goods, including both high-tech consumer products and food products.

Notes:

Print version record

June 2023.