RT Journal Article
SR Electronic
T1 On Hedonic Valuation of Urban Amenities Using Unbalanced Data
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 545
OP 551
DO 10.3368/le.86.3.545
VO 86
IS 3
A1 Mueller, Valerie
A1 Sheriff, Glenn
YR 2010
UL http://le.uwpress.org/content/86/3/545.abstract
AB Hedonic valuation of urban amenities often requires estimating housing and labor market regressions. It is difficult to get both types of data for all survey respondents. We show that the common practice of conducting two separate regressions with unbalanced data causes inconsistent covariance matrix estimation and improper inference regarding amenity values. We demonstrate how two easily implementable yet consistent techniques can be used for hedonic valuation with an application in valuing temperature increases in urban Brazil. (JEL C31, Q51)