• Media type: E-Book
  • Title: Measuring Substitution Patterns in Differentiated Products Industries
  • Contributor: Gandhi, Amit [Author]; Houde, Jean-François [Other]
  • Corporation: National Bureau of Economic Research
  • imprint: Cambridge, Mass: National Bureau of Economic Research, 2019
  • Published in: NBER working paper series ; no. w26375
  • Extent: 1 Online-Ressource; illustrations (black and white)
  • Language: English
  • DOI: 10.3386/w26375
  • Identifier:
  • Reproduction note: Hardcopy version available to institutional subscribers
  • Origination:
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    Mode of access: World Wide Web
  • Description: We study the estimation of substitution patterns within the discrete choice framework developed by Berry (1994) and Berry, Levinsohn, and Pakes (1995). Our objective, is to illustrate the consequences of using weak instruments in this non-linear GMM context, and propose a new class of instruments that can be used to estimate a large family of models with aggregate data. We argue that relevant instruments should reflect the (exogenous) degree of differentiation of each product in a market (Differentiation IVs), and provide a series of examples to illustrate the performance of simple instrument functions
  • Access State: Open Access