Confronting Omitted Variable Bias and Multi-Scale Capitalization in Hedonic Price Models
| Title: | Confronting Omitted Variable Bias and Multi-Scale Capitalization in Hedonic Price Models |
|---|---|
| Authors: | Joshua K. Abbott; H. Allen Klaiber; I. Introduction |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.econ.duke.edu/uploads/assets/Workshop%20Papers/AbbottKlaiberHT_021110.pdf. |
| Collection: | CiteSeerX |
| Subject Terms: | Non-market goods; Capitalization; Endogeneity; Hedonic; Hausman-Taylor JEL Codes; Q51; C23 1 An Embarrassment of Riches |
| Description: | Many researchers have addressed concerns of omitted variable bias in hedonic price models through the use of spatial fixed effects. We argue that this approach does not consider the biases introduced by effects that overlap the zone of capitalization for the non-market good. We show this bias can dominate the usual omitted variable bias using data on developer-provided open space. We control for multi-scale capitalization and omitted variables simultaneously by extending the Hausman-Taylor estimator where the panel component of the estimator is defined over repeated transactions within neighborhoods rather than the traditional definition following a unique cross-sectional unit through time. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.153.6186; http://www.econ.duke.edu/uploads/assets/Workshop%20Papers/AbbottKlaiberHT_021110.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.153.6186; http://www.econ.duke.edu/uploads/assets/Workshop%20Papers/AbbottKlaiberHT_021110.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.B251AFA7 |
| Database: | BASE |