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 -