Migration And Hedonic Valuation: The Case Of Air Quality

Conventional hedonic techniques for estimating the value of local amenities rely on the assumption that households move freely among locations. The authors show that when moving is costly, the variation in housing prices and wages across locations may no longer reflect the value of differences in local amenities. They develop an alternative discrete-choice approach that models the household location decision directly, and they apply it to the case of air quality in U.S. metro areas in 1990 and 2000.

Provided by: National Bureau of Economic Research Topic: Software Date Added: Mar 2006 Format: PDF

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