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Estimating Ricardian Models With Panel Data

Author

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  • Emanuele Massetti

    (Fondazione Eni Enrico Mattei (FEEM) and Euro-Mediterranean Centre for Climate Change (CMCC))

  • Robert Mendelsohn

    (Yale University)

Abstract

Many nonmarket valuation models, such as the Ricardian model, have been estimated using cross sectional methods with a single year of data. Although multiple years of data should increase the robustness of such methods, repeated cross sections suggest the results are not stable. We argue that repeated cross sections do not properly specify the model. Panel methods that correctly specify the Ricardian model are stable over time. The results suggest that many cross sectional methods including hedonic studies and travel cost studies could be enhanced using panel data.

Suggested Citation

  • Emanuele Massetti & Robert Mendelsohn, 2011. "Estimating Ricardian Models With Panel Data," Working Papers 2011.50, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2011.50
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    References listed on IDEAS

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    Cited by:

    1. Bezabih, Mintewab & Di Falco, Salvatore & Mekonnen, Alemu, 2014. "On the Impact of Weather Variability and Climate Change on Agriculture: Evidence from Ethiopia," Discussion Papers dp-14-15-efd, Resources For the Future.
    2. repec:uwp:landec:v:93:y:2017:i:4:p:631-653 is not listed on IDEAS
    3. Dono, Gabriele & Cortignani, Raffaele & Giraldo, Luca & Pasqui, Massimiliano & Roggero, Pier Pao, 2014. "Income Impacts of Climate Change: Irrigated Farming in the Mediterranean and Expected Changes in Probability of Favorable and Adverse Weather Conditions," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(3).
    4. repec:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0001-y is not listed on IDEAS
    5. Dale T. Manning & Christopher Goemans & Alexander Maas, 2017. "Producer Responses to Surface Water Availability and Implications for Climate Change Adaptation," Land Economics, University of Wisconsin Press, vol. 93(4), pages 631-653.
    6. Heman D. Lohano, "undated". "Weather Variability, Agricultural Revenues and Internal Migration: Evidence from Pakistan," Working papers 99, The South Asian Network for Development and Environmental Economics.
    7. Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    8. Emanuele Massetti & Robert Mendelsohn, 2017. "Do Temperature Thresholds Threaten American Farmland?," Working Papers 2017.43, Fondazione Eni Enrico Mattei.
    9. Massetti, Emanuele & Mendelsohn, Robert & Chonabayashi, Shun, 2016. "How well do degree days over the growing season capture the effect of climate on farmland values?," Energy Economics, Elsevier, vol. 60(C), pages 144-150.
    10. Alemu Mekonnen, 2014. "Economic Costs of Climate Change and Climate Finance with a Focus on Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 23(suppl_2), pages 50-82.
    11. Kaixing Huang, 2015. "The Economic Impacts of Global Warming on Agriculture: the Role of Adaptation," School of Economics Working Papers 2015-20, University of Adelaide, School of Economics.
    12. Jikun Huang & Kaixing Huang & Jinxia Wang, 2016. "The Potential Benefits of Agricultural Adaptation to Warming in China in the Long Run," School of Economics Working Papers 2016-06, University of Adelaide, School of Economics.
    13. Karen Fisher-Vanden & Ian Sue Wing & Elisa Lanzi & David Popp, 2013. "Modeling climate change feedbacks and adaptation responses: recent approaches and shortcomings," Climatic Change, Springer, vol. 117(3), pages 481-495, April.
    14. Christopher Severen & Christopher Costello & Olivier Deschenes, 2016. "A Forward Looking Ricardian Approach: Do Land Markets Capitalize Climate Change Forecasts?," NBER Working Papers 22413, National Bureau of Economic Research, Inc.
    15. Kaixing Huang, 2016. "The Economic Impacts of Global Warming on US Agriculture: the Role of Adaptation," School of Economics Working Papers 2016-03, University of Adelaide, School of Economics.
    16. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," GRI Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
    17. Meyer, Kevin Michael, 2017. "Three essays on environmental and resource economics," ISU General Staff Papers 201701010800006585, Iowa State University, Department of Economics.
    18. Tsvetan Tsvetanov & Lingqiao Qi & Deep Mukherjee & Farhed Shah & Boris Bravo-Ureta, 2016. "Climate Change And Land Use In Southeastern U.S.: Did The “Dumb Farmer” Get It Wrong?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, August.

    More about this item

    Keywords

    Climate Change; Impacts; Agriculture; Hedonic Models;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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