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An examination of the price quality relationship among domestic, European and Japanese automobiles
Abstract
This study has examined the price-quality relationship among Domestic, European and Japanese automobiles for the period 1976-1985. The hedonic technique, employing statistical regressions over models in adjacent years, was used in developing quality-adjusted price indexes. List prices of different makes were regressed on measurable automobile characteristics. This study made several improvements in the method of estimating quality-adjusted prices. Quality-adjusted price ratios were also constructed for European, Japanese and Domestic automobiles. Comparisons were made between list prices and quality-adjusted prices to determine years characterized by quality appreciation or deterioration. Quality-adjusted prices were compared with the new car component of the Consumer Price Index, with European and Japanese exchange rates, as well as with European and Japanese market shares in the U.S. Quality-adjusted price ratios appeared to respond more to exchange rate changes and to be more closely associated with market share changes than list price ratios.
Subject Area
Economics|Business costs|International law|International relations
Recommended Citation
Steele, John W, "An examination of the price quality relationship among domestic, European and Japanese automobiles" (1988). ETD collection for University of Nebraska-Lincoln. AAI8907538.
https://digitalcommons.unl.edu/dissertations/AAI8907538