Abstract
If housing markets exhibit slow adjustment to system shocks, then hedonic estimates of the price impact from environmental amenity trends may be time variant. This paper suggests an alternative to the cross-sectional model for estimating hedonic prices using an error correction approach that allows for endogenous environmental quality. The model is applied to data concerning an open space purchase program in Boulder, Colorado, and shows that the economic impact of an open space purchase takes several years to be fully realized. This observation questions using cross-sectional, hedonic models for evaluating willingness to pay for time-trended environmental amenities. (JEL Q24, R521)
In this issue
Jump to section
Related Articles
Cited By...
- Farmland Investment Characteristics from a Forward-Looking Perspective: An Explanation for the "High Return/Low Risk" Paradox
- Urban Stream Restoration Projects: Do Project Phase, Distance, and Type Affect Nearby Property Sale Prices?
- Property Value Capitalization and Municipal Open Space Referenda
- Measuring the Property-Value Effects of Local Land Use and Preservation Referenda
- Spatial and Temporal Variation in the Housing Market Values of Lot Size and Open Space
- Communities, Competition, Spillovers, and Open Space