Hedonic Estimation under Very General Conditions Using Experimental and Quasi-Experimental Designs

Chris Rohlfs (), Ryan Sullivan and Thomas Kniesner
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Chris Rohlfs: Morgan Stanley

No 7554, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper develops a generalized hedonic model in which an exogenous shock to a single product attribute can affect other attributes, the markets for the product's complements and substitutes, and aggregate quantity produced. These factors are shown to be empirically relevant and to cause bias in traditional approaches. Experimental and quasi-experimental estimators of attribute demand are introduced that address these biases, are transparent, and are straightforward to implement. One of these estimators is applied to measure the marginal military recruit's valuation of educational benefits, which is found to range across packages from -$0.024 to +$0.467 per dollar of benefits.

Keywords: generalized; heterogeneous goods; amenity; attribute demand; marginal willingness to pay; quasi-experiment; experiment; identification; discrete choice; hedonic; endogenous attributes; complement; substitute (search for similar items in EconPapers)
JEL-codes: C31 C35 C9 D12 D61 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2013-08
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Regional Science and Urban Economics, 2016, 57, 54-62

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