Document Type
Discussion Paper
Publication Date
11-1-2001
CFDP Number
1337
CFDP Pages
35
Abstract
In this paper we provide an algorithm for estimating characteristic based demand models from alternative data sources, and apply it to new data on the market for passenger vehicles. We find that, provided care is taken in constructing the demand system and rich enough data are available, the characteristic based model can both rationalize existing results and provide realistic out of sample predictions.
Recommended Citation
Berry, Steven T.; Levinsohn, James; and Pakes, Ariel, "Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market" (2001). Cowles Foundation Discussion Papers. 1599.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1599