Working Paper Title (Times New Roman, 12, bold

(3) The logarithm of the unit value is equal to the logarithm of the general price level plus the logarithm of quality. [...] The nonparametric estimate of the expenditure elasticity of quality is obtained by taking the derivative of (8) with respect to ln X and evaluating the result at the estimates obtained from maximizing (13). [...] Figure 6 reports the estimates of (10) when applied to the food aggregate 2% Milk, Figure 7 reports the estimates of (10) when applied to the food aggregate Eggs and Figure 8 reports the estimates of (10) when applies to the food aggregate Lettuce. [...] Over the bulk of the data, the effect appears to be increasing in a somewhat linear fashion for all three food aggregates.∂f̂ (ln X) / ∂ ln X , the nonparametric expenditure elasticity of quality is significantly different from zero over at least some subset of the range of the 18 log of total food expenditure. [...] Figure 9 reports the estimates of (10) when applied to the food aggregate Eggs, Figure 10 reports the estimates of (10) when applied to the food aggregate Chicken and Figure 11 reports the estimates of (10) when applies to the food aggregate Potatoes.