Quasi experiments, hedonic models, and estimating trade-offs for local amenities

H. Allen Klaiber, V. Kerry Smith

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This paper evaluates whether the property value capitalization effects measured with quasiexperimental methods offer reliable estimates of willingness to pay for changes in amenities. We propose the use of a market simulation as a robustness check. Two applications establish the method's relevance. The first examines the conversion of land cover from desert to wet landscape. The second examines cleanup of hazardous waste sites. We find that even when quasi-experimental methods have access to ideal instruments, their performance in measuring general equilibrium willingness to pay cannot be assumed ideal. It needs to be evaluated considering the specific features of each application. (JEL Q51).

Original languageEnglish (US)
Pages (from-to)413-431
Number of pages19
JournalLand Economics
Volume89
Issue number3
StatePublished - Aug 2013
Externally publishedYes

Fingerprint

amenity
willingness to pay
experiment
cleanup
hazardous waste
land cover
desert
market
simulation
method
Willingness-to-pay
Hedonic model
Trade-offs
Quasi-experiment
Amenities
Land cover
General equilibrium
Property values
Hazardous waste
Simulation

ASJC Scopus subject areas

  • Economics and Econometrics
  • Environmental Science (miscellaneous)

Cite this

Allen Klaiber, H., & Kerry Smith, V. (2013). Quasi experiments, hedonic models, and estimating trade-offs for local amenities. Land Economics, 89(3), 413-431.

Quasi experiments, hedonic models, and estimating trade-offs for local amenities. / Allen Klaiber, H.; Kerry Smith, V.

In: Land Economics, Vol. 89, No. 3, 08.2013, p. 413-431.

Research output: Contribution to journalArticle

Allen Klaiber, H & Kerry Smith, V 2013, 'Quasi experiments, hedonic models, and estimating trade-offs for local amenities', Land Economics, vol. 89, no. 3, pp. 413-431.
Allen Klaiber, H. ; Kerry Smith, V. / Quasi experiments, hedonic models, and estimating trade-offs for local amenities. In: Land Economics. 2013 ; Vol. 89, No. 3. pp. 413-431.
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