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

H. Allen Klaiber, V. Kerry Smith

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

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
DOIs
StatePublished - Aug 2013

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Economics and Econometrics

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