RT Journal Article
SR Electronic
T1 Combining Revealed and Stated Preference Data to Estimate Preferences for Residential Amenities: A GMM Approach
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 30
OP 52
DO 10.3368/le.89.1.30
VO 89
IS 1
A1 Daniel J. Phaneuf
A1 Laura O. Taylor
A1 John B. Braden
YR 2013
UL http://le.uwpress.org/content/89/1/30.abstract
AB We show how stated preference information obtained from a choice experiment, and revealed preference information based on housing market transactions, can be combined via generalized method of moments (GMM) estimation. Specifically, we use a moment condition matching the predicted marginal willingness to pay (WTP) from a first-stage hedonic model to the marginal WTP formula implied by the choice experiment utility function. This is coupled with other moments from the choice experiment to produce GMM-based estimates of parameters that reflect the strengths of each data source. Our application values remediation of a contaminated site in Buffalo, New York, and we find evidence in support of estimates arising from our approach. (JEL Q51, Q53)