{"title":"Measuring the Cost of Living Index, Output Growth, and Productivity Growth in the Retail Industry: An Application to Japan","authors":"Mitsuru Sunada","doi":"10.1111/j.1475-4991.2010.00423.x","DOIUrl":null,"url":null,"abstract":"This study applies a framework that enables one to estimate quality, exact cost of living (COL) indexes, and output growth for the retail industry. The framework is based on discrete choice theory, in which product differentiation and quality change are explicitly modeled. For illustration, the framework is then applied to the Japanese retail industry. The estimated quality index shows that, between 1985 and 1999, Japanese retail services quality improved, and the estimated COL index declined monotonically. Furthermore, the results from growth accounting suggest that ignoring both differentiation in the retail services market and changes in service quality may downwardly bias estimated output and productivity growth.","PeriodicalId":135206,"journal":{"name":"ERN: Measurement & Data on National Income & Product Accounts (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2010-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: Measurement & Data on National Income & Product Accounts (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/j.1475-4991.2010.00423.x","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 3
Abstract
This study applies a framework that enables one to estimate quality, exact cost of living (COL) indexes, and output growth for the retail industry. The framework is based on discrete choice theory, in which product differentiation and quality change are explicitly modeled. For illustration, the framework is then applied to the Japanese retail industry. The estimated quality index shows that, between 1985 and 1999, Japanese retail services quality improved, and the estimated COL index declined monotonically. Furthermore, the results from growth accounting suggest that ignoring both differentiation in the retail services market and changes in service quality may downwardly bias estimated output and productivity growth.