Unweighted hedonic regression models will be considered in sections 2 and 3 below.
We consider both weighted and unweighted hedonic regression models. This paper provides a formal exposition of the factors underlying such differences and the implications for choice of method. However, they can yield quite different results. They provide a means by which price change can be measured in product markets where there is a rapid turnover of differentiated models. Both approaches not only correct price changes for changes in the quality of items purchased, but also allow the indexes to incorporate matched and unmatched models. The purpose of this paper is to compare two main and quite distinct approaches to the measurement of hedonic price indexes: time dummy hedonic indexes and hedonic imputation indexes.
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