Partial identification of amenity demand functions

Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis

“…As such, a welfare interpretation generally only holds at the margin (Kuminoff and Pope 2014). Although advancements have been made to infer formal non-marginal welfare measures (e.g., Bajari and Benkard 2005;Bartik 1987;Ekeland et al, 2004;Bishop and Timmins 2019;Bishop and Timmins 2018;Banzhaf , 2021Zabel and Keil 2000;Zhang et al 2015), such methods are not widely applied, and a commonly agreed upon best approach remains an open question (Bishop et al 2020).…”

“…16 This proxy is not without possible error, however. For example, Zhang et al (2015) conduct a more recent analysis using older transaction data, and so our trend variable may not reflect methodological trends well in that case. 17 As a robustness check, we estimate the corresponding RE Panel models and find virtually identical results (see Appendix C).…”

Economic valuation of a rise in ambient radiation risks: Hedonic pricing evidence from the accident in Fukushima

“…As a result, movements along that curve will reflect an unknown combination of marginal values and changes in the mix of preferences at each location. A number of approaches have been developed to identify demand functions, including treating geographically isolated cities or different housing types as separate market segments (Day, Bateman, & Lake, ; Palmquist, ; Zhang, Boyle, & Kuminoff, ), using repeat sales (Palmquist, ; Ries & Somerville, ), or using owner characteristics, such as age and income to estimate equations in which the marginal values from the bid function are used as dependent variables and then imposing assumptions about the shape of the utility function (e.g., Klaiber & Phaneuf, ). In our case, these methods are unpromising, first, because the small geographic scale of Japan, coupled with its high population density and efficient transport network precludes treating separate cities as isolated markets and, second, because the transactions database cannot be linked to demographic information about the owners.…”

Staying afloat: The effect of algae contamination on Lake Erie housing prices

“…Secchi depth is a commonly used water quality measure (Gibbs et al, 2002; Liu et al, 2019; Walsh et al, 2011) because of the scale and accessibility of in situ monitoring data across the United States (Wolf & Kemp, 2021), with property values increasing between $498 (Walsh et al, 2011) and $11,330 (Moore et al, 2020) for a one‐foot improvement in water transparency. This effect is spatially limited to homes near a waterbody (Walsh et al, 2011; Walsh et al, 2017; Wolf & Klaiber, 2017) and will vary with ambient water conditions, with greater gains from water quality improvement observed at lower ambient conditions (Boyle et al, 1999; Smeltzer & Heiskary, 1990; Zhang et al, 2015).…”