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Estimating Ricardian Models With Panel Data

Author

Listed:
  • 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

    as
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    More about this item

    Keywords

    Climate Change; Impacts; Agriculture; Hedonic Models;
    All these keywords.

    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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