AN EMBARRASSMENT OF RICHES: CONFRONTING OMITTED VARIABLE BIAS AND MULTISCALE CAPITALIZATION IN HEDONIC PRICE MODELS

• 成果类型: Article
• 署名作者: Abbott, Joshua K.; Klaiber, H. Allen
• 署名单位: Arizona State University; Arizona State University-Tempe; University System of Ohio; Ohio State University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00134
• 发表日期: 2011-11
• 页码: 1331-1342
• 关键词: panel-data; property-values; air-quality; open space; valuation; demand; IMPACT; matter; MARKET; crime

摘要

Many researchers have addressed concerns of omitted variable bias in hedonic price models through the use of spatial fixed effects. We argue that this approach does not consider the biases introduced by effects that overlap the zone of capitalization for nonmarket goods. We show this bias can dominate the usual omitted variable bias using data on developer-provided open space. We control for multiscale capitalization and omitted variables simultaneously by extending the Hausman-Taylor estimator where the panel component of the estimator is defined over repeated transactions within neighborhoods rather than the traditional definition following a unique cross-sectional unit through time.