Econometric Analysis of Price Index for Home Video Cassette Recorders in the U.S., 1978-87
University of Tokyo - Faculty of Economics
Economics of Innovation and New Technology
This paper conducts an empirical analysis on the U.S. VCR market using a hedonic approach. The paper finds that quality-adjusted price indexes decline at 11-12% per year, with a large annual drop of about 18% from 1982-85. Estimation and data analysis reveal interesting aspects of the evolution of quality and price in the VCR market. Finally the paper estimates a bias of 2.4% per year in the CPI electronics subindex due to the missing category of VCR until 1986.
Note: This is a description of the article and not the actual abstract.
Keywords: Home video cassette recorders; Price index; Hedonics; CPI; New products
JEL Classification: C23, C43, L68
Date posted: January 25, 2002