Chapter pages in book: (201- 202) Hedonic Imputation versus Time Dummy Hedonic Indexes 201

We are very grateful for the comments made by Jan de Haan on our chapter. In particular, his equations (1) through (4) make clear the various alterna-tives that could be used by statistical agencies in constructing elementary price indexes using hedonic regressions to quality adjust new and disappear-ing items or models for a narrowly specifi ed commodity. The commentary by Haan provides statistical agencies with a very useful overview of the issues associated with quality adjustment of prices in a replacement sampling con-text. Moreover, the notation used in our chapter will not be familiar to most practitioners and so Jan has done us all a favor in translating our rather formal matrix algebra results into an easier to interpret framework. In order to help the reader make the connection between our notation and the notation used by Haan, we will specialize our unweighted models discussed in sections 4.2 and 4.3 of our chapter to the case where the number of new items that enter the sample in period 1 is equal to the number of items that have disappeared from the sample in period 0 so that the total numbe