Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model

@article{Day2007BeyondIP,
  title={Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model},
  author={Brett Day and Ian J. Bateman and Iain R. Lake},
  journal={Environmental and Resource Economics},
  year={2007},
  volume={37},
  pages={211-232}
}
Using a two-stage hedonic pricing methodology we estimate a system of structural demand equations for different sources of transport-related noise. In the first stage, we identify market segments using model-based clustering techniques and estimate separate hedonic price functions (HPFs) for each segment. In so doing, we show how a semiparametric spatial smoothing estimator outperforms other standard specifications of the HPF. In the second stage, we control for non-linearity of the budget… CONTINUE READING

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