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Using Scanner Data to Estimate Country Price Parities: A Hedonic Regression Approach
Author(s) -
Heravi Saeed,
Heston Alan,
Silver Mick
Publication year - 2003
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/1475-4991.00071
Subject(s) - hedonic regression , econometrics , context (archaeology) , economics , survey data collection , sample (material) , scanner , price index , regression , computer science , statistics , mathematics , geography , chemistry , archaeology , chromatography , artificial intelligence
This paper uses scanner data from the bar‐code readers of retailers to provide estimates of inter‐country price parities at the level of the basic heading. The use of such data is appealing given its extensive coverage of transactions, information on weights, prices and characteristics of items at a highly detailed level. The study uses dummy variable hedonic and exact/superlative hedonic index number formulations applied to an inter‐country context for both bilateral and multilateral comparisons. Unlike conventional methods, such methods are not confined to matched samples comparisons and thus make use of the entire sample. Their application extends to price survey data using checklists on characteristics. The application is to scanner data on about 1 million transactions for television sets over two months in three countries. It is, to the authors’ knowledge, the first such use of scanner data and application of the above hedonic frameworks in this context.