Difference-in-Differences Hedonics

• 成果类型: Article
• 署名作者: Banzhaf, H. Spencer
• 署名单位: University System of Georgia; Georgia State University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/714442
• 发表日期: 2021
• 页码: 2385-2414
• 关键词: housing values evidence; identification; benefits; prices; MARKET; consumers; demand; models; IMPACT; matter

摘要

Cross-sectional estimates of hedonic price functions theoretically recover marginal values for characteristics but face endogeneity problems. Consequently, economists have introduced difference-in-differences and other quasi-experimental econometric methods into hedonic models. Unfortunately, the welfare interpretation of these estimands has not been clear. This paper shows that quasi-experimental hedonics can identify the movement along the ex post price function. It further shows that this effect is a lower bound on general equilibrium welfare. Thus, nonmarginal welfare can be recovered using transparent designs without Rosen's second stage or more structural models. The paper illustrates these results with an application to toxic facilities and housing prices.