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Working Paper
Heterogeneous car buyers: a stylized fact
Using a new dataset, we document a systematic pattern in the demographic characteristics of car buyers over the model year: as vehicle prices fall over the model year, so do buyer incomes. This pattern is consistent with price-insensitive buyers purchasing early in the year, while others wait until prices decline, and suggests price skimming (i.e. intertemporal price discrimination). Such consumer heterogeneity over the model year raises questions for measuring quality improvements in new goods.
Working Paper
Why are semiconductor prices falling so fast? Industry estimates and implications for productivity measurement
By any measure, price deflators for semiconductors fell at a staggering pace over much of the last decade. These rapid declines are typically attributed to technological innovations that lower constant-quality manufacturing costs. But, given Intel's dominance in the microprocessor market, those price declines may also reflect changes in Intel's profit margins. Disaggregate data on Intel's operations are used to explore these issues. There are three basic findings. First, the industry data show that Intel's markups from its microprocessor segment shrank substantially from 1993-99. Second, ...
Working Paper
Vehicle ownership, vehicle acquisitions and the growth of auto leasing: evidence from consumer surveys
This paper documents the basic features of data on motor vehicles from the Federal Reserve Board's Survey of Consumer Finances and the Bureau of Labor Statistics' Consumer Expenditure Survey. Despite some methodological differences between the two surveys, we find that they yield strikingly similar pictures of households' vehicle holdings. The survey data are also quite consistent with population estimates of vehicle stocks obtained from other sources. Finally, we document the growth of auto leasing by consumers, and find little evidence for the commonly-held view that liquidity constraints ...
Working Paper
The stability of dummy variable price measures obtained from hedonic regressions
Although the stability of coefficients from hedonic regressions has received much attention recently, that of dummy variable (DV) price indexes obtained from these regressions has not. In principle, one problem translates into the other only when some prices are not observed in the data. Numerically, however, DV measures obtained from a "typical" specification can be quite unstable even when the number of missing prices is small. To the extent that collinearity is an important source of the problem, functional forms that use (orthogonal) fixed effects to control for quality differences ...
Working Paper
When do matched-model and hedonic techniques yield similar measures?
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 ...
Working Paper
The replacement demand for motor vehicles: evidence from the Survey of Consumer Finances
The motor vehicle industry has undergone important changes in recent years, including a shift in production from autos to light trucks and growth of vehicle leasing. This paper uses household-level data from the Federal Reserve's Survey of Consumer Finances to document changes in households' acquisitions and financing of motor vehicles from 1989 to 2001. We examine what types of vehicles households had, what financing arrangements were used to acquire them, and how vehicle holdings vary with such household characteristics as income, age, wealth, and creditworthiness. The data provide useful ...
Working Paper
Shifting trends in semiconductor prices and the pace of technological progress
This paper examines three questions motivated by previous research on semiconductors and productivity growth: Why did semiconductor prices fall so rapidly in the second half of the 1990s, why has the rate of price decline slowed since 2001, and to what extent are these price swings associated with changes in the rate of advance in semiconductor technology? We show that the price swings are statistically significant and that they reflect changes in both price-cost markups and cost trends. Further analysis indicates that the shift to faster cost declines in the mid-1990s likely corresponded to ...
Working Paper
Price measures for semiconductor devices
This note provides quality-adjusted price indexes and nominal shipments data for highly disaggregate classes of semiconductor devices. These data may be used to construct indexes under different assumptions from those used in indexes that are currently available. Because the construction of these building blocks require some assumptions, the indexes are compared with similar price measures constructed by Bruce Grimm (1998) and by the Bureau of Labor Statistics.