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TD 0462 - Quality Change in Brazilian Automobiles

Renato Fonseca / Rio de Janeiro, março de 1997

This paper investigates the quality evolution of Brazilian autos. In order to measure the quality evolution of Brazilian autos, it has assembled a data set for Brazilian passenger cars for the period 1960/64, to which it has applied the hedonic pricing methodology. It appears to be the first time an index of quality change has been constructed for the Brazilian automobile industry. The results presented here have two major implications. They allow a better understanding of product innovation in Brazil`s auto industry, and they provide a clearer explanation of the behavior of auto prices.


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Surplus Labor and Industrialization


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