Arbeitspapier
A price index with variable mark-ups and changing variety
This paper proposes an estimation of an augmented Tornqvist price-index - featuring demand shifters - which is exact for homothetic translog preferences. Contrary to previous work based on a constant elasticity of substitution across varieties, this demand system allows for changes in markups even when the number of products is large. We then propose a structural decomposition of this index in terms of changes in markups, productivity, variety and demand shocks. We illustrate our approach using sample data from ACNielsens Homescan Panel. For instance, our results are consistent with competition effects where a decrease in per-product demand translates into lower markups.
- Language
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Englisch
- Bibliographic citation
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Series: NBB Working Paper ; No. 356
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Demuynck, Thomas
Parenti, Mathieu
- Event
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Veröffentlichung
- (who)
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National Bank of Belgium
- (where)
-
Brussels
- (when)
-
2018
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Demuynck, Thomas
- Parenti, Mathieu
- National Bank of Belgium
Time of origin
- 2018
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