Chernozhukov, Victor; Hausman, Jerry A.; Newey, Whitney K. - 2019
From its inception, demand estimation has faced the problem of "many prices." While some aggregation across goods is …, nonseparable heterogeneity and solve the "zeros problem" of demand by including zeros in the estimation. We also use panel data to … correct for the ridge regularization. We find that panel estimates of price elasticities are much smaller than cross section …
