Estimating Hedonic Price Indices for Ground Vehicles
Abstract
When goods persist in the marketplace over time, price indices can be computed directly from observed prices. Hedonic models are used to estimate real price growth for goods that do not persist in the marketplace long enough to establish a price change history. Hedonic models attempt to explain as much price change as possible using observable quality features. We describe challenges in developing a hedonic price index for military vehicles, and propose an alternative pseudo-hedonic model based on hypothesized unobservable quality growth within in vehicle families.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2015
- Accession Number
- ADA623658
Entities
People
- David M. Tate
- Stanley A. Horowitz
Organizations
- Institute for Defense Analyses