PT  - JOURNAL ARTICLE
AU  - Allen Klaiber, H.
AU  - Kerry Smith, V.
TI  - Quasi Experiments, Hedonic Models, and Estimating Trade-offs for Local Amenities
AID  - 10.3368/le.89.3.413
DP  - 2013 Aug 01
TA  - Land Economics
PG  - 413--431
VI  - 89
IP  - 3
4099  - http://le.uwpress.org/content/89/3/413.short
4100  - http://le.uwpress.org/content/89/3/413.full
SO  - Land Econ2013 Aug 01; 89
AB  - This paper evaluates whether the property value capitalization effects measured with quasi-experimental 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)