Hedonic prices and implicit markets
Subtitle: estimating marginal willingness to pay for differentiated products without instrumental variables
By: Kelly C. Bishop, Christopher Timmins
Contributors: Timmins, Christopher; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17611; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17611.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The hedonic model of Rosen (1974) has become a workhorse for valuing the characteristics of differentiated products despite a number of well-documented econometric problems.  For example, Bartik (1987) and Epple (1987) each describe a source of endogeneity in the second stage of Rosen's procedure that has proven difficult to overcome.  In this paper, we propose a new approach for recovering the marginal willingness-to-pay function that altogether avoids these endogeneity problems.  Applying this estimator to data on large changes in violent crime rates, we find that marginal willingness-to-pay increases by ten cents with each additional violent crime per 100,000 residents"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 1/17/2012.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.