Product turnover and the cost-of-living index: Quality versus fashion effects

Kozo Ueda, Kota Watanabe, Tsutomu Watanabe

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


This paper evaluates the effects of product turnover on a welfare- based cost-of-living index by incorporating the quality effect and the fashion effect. Employing scanner data for Japan for the years 1988-2013, we find that (i) the price and quantity of a new product tend to be higher than those of its predecessor at its exit; (ii) a considerable fashion effect exists for the entire sample period, while the quality effect is declining over time; and (iii) the discrepancy between the cost-of-living index estimated based on our methodology and the price index constructed only from a matched sample is not large.

Original languageEnglish
Pages (from-to)310-347
Number of pages38
JournalAmerican Economic Journal: Macroeconomics
Issue number2
Publication statusPublished - 2019

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


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