Automobiles and implicit markets: an estimate of a structural demand model for automobile characteristics

Economists have always found it difficult to investigate the demand for the automobile good due to its heterogeneity. In this paper, the automobile is treated as a differentiated product, and a two-step approach is used to estimate a system of structural demand equations for automobile attributes. The obtained results are statistically sound and in conformity with theoretical expectations. This should be taken as an indication of the validity and robustness of the procedure used in this analysis.