Panel Data Hedonics: Rosen's First Stage as a "Sufficient Statistic"

Spencer Banzhaf

No 21485, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Traditional cross-sectional estimates of hedonic price functions can recover marginal willingness to pay for characteristics, but face endogeneity problems for estimating non-marginal welfare measures. I show that when panel data on household demands are available, one can construct a second-order approximation to non-marginal welfare measures using only the first-stage marginal prices. With repeated cross sections of product prices, the measure can be set identified or, under a single-crossing restriction, point identified. Bounds also can be constructed when there are mobility costs. Finally, a variant remains valid when individual preferences shift over time.

JEL-codes: D46 D61 H4 Q51 R3 (search for similar items in EconPapers)
Date: 2015-08
New Economics Papers: this item is included in nep-agr, nep-com and nep-ger
Note: EEE PE
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Citations: View citations in EconPapers (10)

Published as H. Spencer Banzhaf, 2020. "PANEL DATA HEDONICS: ROSEN'S FIRST STAGE AS A “SUFFICIENT STATISTIC”," International Economic Review, vol 61(2), pages 973-1000.

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Journal Article: PANEL DATA HEDONICS: ROSEN'S FIRST STAGE AS A “SUFFICIENT STATISTIC” (2020)
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