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On Incorrect Signs in Hedonic Regresion

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  • Timothy Erickson

Abstract

I compute the equilibrium in a model of a differentiated-product market to show that, even when all consumers in the market agree that more of each product characteristic is preferred to less, an OLS regression of market-clearing prices on product characteristics can yield negative coeffcients on the characteristics.

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  • Timothy Erickson, 2016. "On Incorrect Signs in Hedonic Regresion," Economic Working Papers 490, Bureau of Labor Statistics.
    • Handle: RePEc:bls:wpaper:490
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    File URL: https://www.bls.gov/osmr/research-papers/2016/pdf/ec160050.pdf
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