Measuring Aggregate Price Indexes with Taste Shocks: Theory and Evidence for CES Preferences

Previously circulated as “A Unified Approach to Estimating Demand and Welfare.” We are especially grateful to the editor, five anonymous referees, Dave Donaldson, Pablo Fajgelbaum, Rob Feenstra, Pete Klenow, and Nick Bloom for helpful comments. We are also grateful to many other colleagues and conference and seminar participants for their helpful comments. We also thank Anna Blender, Molly Borden, Mark Greenan, Mathis Maehlum, Anders Nielsen, Rafael Parente, Dyanne Vaught and Yingjie (Angela) Wu for excellent research assistance. We also want to thank Young and Rubicam for sharing their brand asset value data. All results are calculated based on data from The Nielsen Company (US), LLC and provided by the Marketing Data Center at The University of Chicago Booth School of Business. Responsibility for the results, opinions, and any errors lies with the authors alone, and the views expressed herein are not necessarily those of the National Bureau of Economic Research.

• August 2, 2016
• March 29, 2017
• May 11, 2018
• May 21, 2019