Valuing Time-Varying Attributes Using the Hedonic Model: When Is a Dynamic Approach Necessary?

Kelly Bishop and Alvin Murphy

The Review of Economics and Statistics, 2019, vol. 101, issue 1, 134-145

Abstract: Abstract We build on the intuitive (static) modeling framework of Rosen (1974) and specify a simple, forward-looking model of location choice. We use this model, along with a series of graphs, to describe the potential biases associated with the static model and relate these biases to the time series of the amenity of interest. We then derive an adjustment factor that allows the potentially biased static estimates to be converted into forwardlooking estimates. Finally, we illustrate these concepts with two empirical applications: the marginal willingness to pay to avoid violent crime and the marginal willingness to pay to avoid air pollution.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/rest_a_00722 (application/pdf)
Access to PDF is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:101:y:2019:i:1:p:134-145

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().