Discussion Papers no. 167

Part II: Inference

Consumer demand with unobservable product attributes

In this paper we discuss statistical inference associated with the theoretical model developed in Part I. Specifically, we demonstrate how the relationship between the distribution of prices and unit values can be exploited to estimate some of the structural parameters. These estimates are essential for constructing price indexes that account for unobservable taste-shifters and quality/location attributes. Finally, the remaining structural parameters can be estimated from data on demand by inserting the price indexes into the corresponding demand system. Finally, we discuss the estimation procedure in the discrete case when consumers choose one unit of a variant at a time.

Om publikasjonen

Tittel

Consumer demand with unobservable product attributes. Part II: Inference

Ansvarlig

John K. Dagsvik

Serie og -nummer

Discussion Papers no. 167

Emne

Discussion Papers

Antall sider

24

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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