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Replication data for: A Rational Expectations Approach to Hedonic Price Regressions with Time-Varying Unobserved Product Attributes: The Price of Pollution

Version
V0
Resource Type
Dataset
Creator
  • Bajari, Patrick
  • Fruehwirth, Jane Cooley
  • Kim, Kyoo il
  • Timmins, Christopher
Publication Date
2012-05-01
Description
  • Abstract

    We propose a new strategy for a pervasive problem in the hedonics literature: recovering hedonic prices in the presence of time-varying correlated unobservables. Our approach relies on an assumption about home buyer rationality, under which prior sales prices can be used to control for time-varying unobservable attributes of the house or neighborhood. Using housing transactions data from California's Bay Area between 1990 and 2006, we apply our estimator to recover marginal willingness to pay for reductions in three of the EPA's "criteria" air pollutants. Our findings suggest that ignoring bias from time-varying correlated unobservables considerably understates the benefits of a pollution reduction policy. (JEL D12, D84, Q53, Q58, R21)
Availability
Download
Relations
  • Is supplement to
    DOI: 10.1257/aer.102.5.1898 (Text)
Publications
  • Bajari, Patrick, Jane Cooley Fruehwirth, Kyoo il Kim, and Christopher Timmins. “A Rational Expectations Approach to Hedonic Price Regressions with Time-Varying Unobserved Product Attributes: The Price of Pollution.” American Economic Review 102, no. 5 (August 2012): 1898–1926. https://doi.org/10.1257/aer.102.5.1898.
    • ID: 10.1257/aer.102.5.1898 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-11

Bajari, Patrick; Fruehwirth, Jane Cooley; Kim, Kyoo il; Timmins, Christopher (2012): Replication data for: A Rational Expectations Approach to Hedonic Price Regressions with Time-Varying Unobserved Product Attributes: The Price of Pollution. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E112541