Replication data for: Lost in Transit: Product Replacement Bias and Pricing to Market

Jón Steinsson & Emi Nakamura
In the microdata underlying US trade price indexes, 40 percent of products are replaced before a single price change is observed and 70 percent are replaced after two price changes or fewer. A price index that focuses on price changes for identical items may, therefore, miss an important component of price adjustment occurring at the time of product replacements. We provide a model of this \"product replacement bias\" and quantify its importance using US data....
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