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

A-Tier
Journal: Review of Economics and Statistics
Year: 2019
Volume: 101
Issue: 1
Pages: 134-145

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract 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.

Technical Details

RePEc Handle
repec:tpr:restat:v:101:y:2019:i:1:p:134-145
Journal Field
General
Author Count
2
Added to Database
2026-01-24