Partial identification of amenity demand functions.

This paper presents a new hedonic framework for reduced form estimation of the demand for spatially delineated nonmarket amenities. We begin from a conventional model of market equilibrium where an amenity is conveyed to homeowners by virtue of their residential location choices. Different housing m...

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Detalles Bibliográficos
Publicado en:Journal of Environmental Economics & Management Vol. 71; pp. 180 - 198
Autores principales: Zhang, Congwen, Boyle, Kevin J., Kuminoff, Nicolai V.
Formato: Artículo
Publicado: Academic Press Inc. May2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May2015
      vid: 71
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      pub: Academic Press Inc.
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        102461801
        10.1016/j.jeem.2015.02.002
      ppf: 180
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      tig:
        atl: Partial identification of amenity demand functions.
      aug:
        au:
          Zhang, Congwen
          Boyle, Kevin J.
          Kuminoff, Nicolai V.
        affil:
          Virginia Tech, Department of Agricultural and Applied Economics, Blacksburg, VA 24061, United States
          Arizona State University, Department of Economics, Tempe, AZ 85287, United States
      su:
        Economic equilibrium
        Marketing research
        Economic demand
        Hedonistic consumption
        Estimation theory
      sug:
        subj:
          Economic equilibrium
          Marketing research
          Economic demand
          Hedonistic consumption
          Marketing Research and Public Opinion Polling
          Estimation theory
      keyword:
        Demand estimation
        Hedonic
        Partial identification
        Demand estimation
        Hedonic
        Partial identification
      ab: This paper presents a new hedonic framework for reduced form estimation of the demand for spatially delineated nonmarket amenities. We begin from a conventional model of market equilibrium where an amenity is conveyed to homeowners by virtue of their residential location choices. Different housing markets may have different hedonic price functions due to variation across markets in the joint distribution of preferences, income, regulations, and technology. In this setting, taste-based sorting within and across markets confounds point identification of reduced form descriptions for amenity demand curves. However, we demonstrate that basic knowledge of the sorting process is sufficient to construct instruments that identify bounds on demand curves. Bounds on demand curves can be translated into ranges of welfare measures for non-marginal changes in amenities. We find these ranges to be potentially informative in a demonstrative application to evaluating the benefits of improved lake water clarity in the Northeast.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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