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

• 成果类型: Review
• 署名作者: Bishop, Kelly C.; Murphy, Alvin D.
• 署名单位: Arizona State University; Arizona State University-Tempe
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00722
• 发表日期: 2019-03
• 页码: 134-145
• 关键词: housing-market; demand; price; VALUES; matter; RISK

摘要

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.