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Nonparametric Estimation and Nonadditive Hedonic Models

Author

Listed:
  • Rosa L. Matzkin

    (Northwestern University & Department of Economics, Universidad de San Andres)

  • James Heckman

    (University of Chicago)

  • Lars Nesheim

    (University College London)

Abstract

We present methods to estimate marginal utility and marginal product functions that are nonadditive in the unobservable random terms, using observations from a single hedonic equilibrium market. We show that nonadditive marginal utility and nonadditive marginal product functions are capable of generating equilibria that exhibit bunching, as well as other types of equilibria. We provide conditions under which these types of utility and production functions are nonparametrically identified, and we propose nonparametric estimators for them. The estimators are shown to be consistent and asymptotically normal.

Suggested Citation

  • Rosa L. Matzkin & James Heckman & Lars Nesheim, 2002. "Nonparametric Estimation and Nonadditive Hedonic Models," Working Papers 51, Universidad de San Andres, Departamento de Economia, revised Jun 2002.
    • Handle: RePEc:sad:wpaper:51
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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc51.pdf
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    References listed on IDEAS

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    Cited by:

    1. Heckman, James J. & Matzkin, Rosa & Nesheim, Lars, 2003. "Simulation and Estimation of Hedonic Models," IZA Discussion Papers 843, Institute of Labor Economics (IZA).
    2. Kasy, Maximilian, 2015. "Identification in a model of sorting with social externalities and the causes of urban segregation," Journal of Urban Economics, Elsevier, vol. 85(C), pages 16-33.
    3. James J. Heckman & Rosa Matzkin & Lars Nesheim, 2003. "Simulation and Estimation of Nonaddative Hedonic Models," NBER Working Papers 9895, National Bureau of Economic Research, Inc.

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