IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v86y2010iii1p545-551.html

On Hedonic Valuation of Urban Amenities Using Unbalanced Data

Author

Listed:
  • Valerie Mueller
  • Glenn Sheriff

Abstract

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.

Suggested Citation

  • Valerie Mueller & Glenn Sheriff, 2010. "On Hedonic Valuation of Urban Amenities Using Unbalanced Data," Land Economics, University of Wisconsin Press, vol. 86(3).
    • Handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p545-551
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/86/3/545
    Download Restriction: A subscription is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Badi H. Baltagi & Susan Garvin & Stephen Kerman, 1989. "Further Monte Carlo Evidence on Seemingly Unrelated Regressions with Unequal Number of Observations," Annals of Economics and Statistics, GENES, issue 14, pages 103-115.
    2. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
    3. Schmidt, Peter, 1977. "Estimation of seemingly unrelated regressions with unequal numbers of observations," Journal of Econometrics, Elsevier, vol. 5(3), pages 365-377, May.
    4. repec:adr:anecst:y:1989:i:14:p:05 is not listed on IDEAS
    5. Hwang, Hae-shin, 1990. "Estimation of a Linear SUR Model with Unequal Numbers of Observations," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 510-515, August.
    6. Allen McDowell, 2004. "From the help desk: Seemingly unrelated regression with unbalanced equations," Stata Journal, StataCorp LLC, vol. 4(4), pages 442-448, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Waldemar Beimer & Wolfgang Maennig, 2017. "Fallende Preise für Einfamilienhäuser: Struktur oder Lage? Der Fall Berlins," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 24(02), pages 21-25, April.
    2. Thomas Murray & David Maddison & Katrin Rehdanz, 2013. "Do Geographical Variations In Climate Influence Life-Satisfaction?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-21.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Donni & Eleonora Matteazzi, 2012. "On the Importance of Household Production in Collective Models: Evidence from U.S. Data," Annals of Economics and Statistics, GENES, issue 105-106, pages 99-125.
    2. Ali Mehrabani & Aman Ullah, 2020. "Improved Average Estimation in Seemingly Unrelated Regressions," Econometrics, MDPI, vol. 8(2), pages 1-22, April.
    3. Hailong Qian & Heather L. Bednarek, 2015. "Partial efficient estimation of SUR models," Economics Bulletin, AccessEcon, vol. 35(1), pages 338-348.
    4. Drton, Mathias & Andersson, Steen A. & Perlman, Michael D., 2006. "Conditional independence models for seemingly unrelated regressions with incomplete data," Journal of Multivariate Analysis, Elsevier, vol. 97(2), pages 385-411, February.
    5. Reinsberg,Bernhard Wilfried & Michaelowa,Katharina & Knack,Stephen, 2015. "Which donors, which funds ? the choice of multilateral funds by bilateral donors at the World Bank," Policy Research Working Paper Series 7441, The World Bank.
    6. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    7. Guignet, Dennis & Jenkins, Robin R. & Belke, James & Mason, Henry, 2023. "The property value impacts of industrial chemical accidents," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    8. Bishop, Kelly C. & Dowling, Jakob & Kuminoff, Nicolai V. & Murphy, Alvin D., 2025. "Tax policy and the heterogeneous costs of homeownership," Journal of Urban Economics, Elsevier, vol. 147(C).
    9. Matías Fontenla & M. Ben Goodwin & Fidel Gonzalez, 2019. "Pollution and the choice of where to work and live within Mexico City," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-17, December.
    10. Nicolai V. Kuminoff, 2018. "Can Understanding Spatial Equilibria Enhance Benefit Transfers for Environmental Policy Evaluation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(3), pages 591-608, March.
    11. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    12. Snyder, Ralph D. & Ord, J. Keith & Koehler, Anne B. & McLaren, Keith R. & Beaumont, Adrian N., 2017. "Forecasting compositional time series: A state space approach," International Journal of Forecasting, Elsevier, vol. 33(2), pages 502-512.
    13. Bieri, David S. & Kuminoff, Nicolai V. & Pope, Jaren C., 2023. "National expenditures on local amenities," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    14. Banzhaf, H. Spencer & Farooque, Omar, 2013. "Interjurisdictional housing prices and spatial amenities: Which measures of housing prices reflect local public goods?," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 635-648.
    15. Paramita Sinha & Martha Caulkins & Maureen Cropper, 2018. "Do Discrete Choice Approaches to Valuing Urban Amenities Yield Different Results Than Hedonic Models?," NCEE Working Paper Series 201804, National Center for Environmental Economics, U.S. Environmental Protection Agency.
    16. Ji, Chen & Chen, Shuai & Jin, Songqing, "undated". "Impact Evaluation of “Regulation on water pollution from livestock and poultry production” -- the case of livestock sector in China," 2018 Annual Meeting, August 5-7, Washington, D.C. 273863, Agricultural and Applied Economics Association.
    17. Miles M. Finney, 2014. "Information And The Demand For Clean Air," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 719-728, October.
    18. Lichun Wang, 2018. "On Seemingly Unrelated Regressions with Linear Restrictions," Biostatistics and Biometrics Open Access Journal, Juniper Publishers Inc., vol. 6(4), pages 110-113, April.
    19. Viale, Ariel M. & Kolari, James W. & Fraser, Donald R., 2009. "Common risk factors in bank stocks," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 464-472, March.
    20. Ferreira, Fernando, 2010. "You can take it with you: Proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 661-673, October.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p545-551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.