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Université de Fribourg

The Econometric Foundations of Hedonic Elementary Price Indices

Brachinger, Hans Wolfgang ; Beer, Michael

Hedonic methods are currently considered state-of-the-art for handling quality changes when compiling consumer price indices. The present article proposes first a mathematical description of characteristics and of elementary aggregates. In a following step, a hedonic econometric model is formulated and hedonic elementary population indices are defined. These indices extend from simple indices...