indices. Since the matched model index does not incorporate price changes for goods which exit, and the goods that exited tend … to be those goods whose prices fall, the matched model index has a selection problem which biases it upwards. The hedonic … index does not have this problem. We illustrate with a new study of price indices for PC's. The hedonic index shows steep …

staggering 55% per year (on average) over the first decade of the technology. By contrast, an hedonic-based index captures just a … small fraction of the decline, and a simple (unadjusted) price index shows a substantial price increase over the same period …

housing transactions data from California's Bay Area between 1990 and 2006, we apply our estimator to recover marginal …

data set of housing transactions in Southern California. The rank predictions of different models are robust with respect …