When Do Matched-Model and Hedonic Techniques Yield Similar Measures?


Ana M. Aizcorbe

Carol Corrado

Mark Doms

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2003-14 | June 1, 2003

Hedonic techniques were developed to control for quality differences across goods and over time in order to construct constant-quality aggregate price measures. When the available data are a panel of high-frequency data on models whose characteristics are constant over time, matched-model price indexes can also be used to obtain constant quality price measures. We show this by demonstrating that, given data of this type, certain matched-model indexes yield price measures that are numerically close to those obtained using hedonic techniques. ; * This paper is a condensed version of a paper that was presented at the CRIW workshop on Price Measurement at the NBER Summer Institute, July 31-August 1, 2000 and is available at http://www.nber.org.

Article Citation

Aizcorbe, Ana M., Carol Corrado, and Mark Doms. 2003. “When Do Matched-Model and Hedonic Techniques Yield Similar Measures?,” Federal Reserve Bank of San Francisco Working Paper 2003-14. Available at https://doi.org/10.24148/wp2003-14