TY  - JOUR
AU  - Berry, Steven
AU  - Levinsohn, James
AU  - Pakes, Ariel
TI  - Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6481
PY  - 1998
Y2  - March 1998
DO  - 10.3386/w6481
UR  - http://www.nber.org/papers/w6481
L1  - http://www.nber.org/papers/w6481.pdf
N1  - Author contact info:
Steven T. Berry
Department of Economics
Yale University
Box 208264
37 Hillhouse Avenue
New Haven, CT 06520-8264
Tel: 203/432-3556
Fax: 203/432-6323
E-Mail: steven.berry@yale.edu

James A. Levinsohn
Yale School of Management
PO Box 208200
New Haven, CT  06520
Tel: 734/763-2319
Fax: 734/764-2769
E-Mail: James.Levinsohn@yale.edu

Ariel Pakes
Department of Economics
Harvard University
Littauer Room 117
Cambridge, MA 02138
Tel: 617/495-5320
Fax: 617/496-7352
E-Mail: apakes@fas.harvard.edu
AB  - In this paper, we exploit new sources of cross-sectional data to estimate a detailed product-level demand system for new passenger vehicles.  We use four data sources: on the characteristics of products, on the attributes of the U.S. population of households, on the match between the first and second vehicle choices of the household, and on the match between households attributes and first choice vehicles.  We show that these data solve some, but not all, of the traditional problems in estimating differentiated products demand systems and indicate which data sources are important for which problem.  The data is rich enough to reveal a rather complex substitution pattern, requiring a quite general modeling framework.  Together the data and model make a detailed analysis of industry demand possible.
ER  -