Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions

Ross, Justin M.; Farmer, Michael C.; Lipscomb, Clifford A.

doi:10.1007/s11146-009-9221-z

Cited by 21 publications

(114 citation statements)

References 12 publications

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“…It is consistent with Ross et al (2009) who showed through a simulation experiment that welfare inferences should not be estimated using distance variables because of serious identification problems. While multiple distance variables or a trend surface can identify an observation's relative location, it is not possible to robustly isolate the MWTP associated with particular landmarks from those that are correlated in space but not included in the model.…”

Section: The Robustness Of Mwtp Resultssupporting

confidence: 89%

“…A more comprehensive simulation-based comparison of OLS with spatial fixed effects and recent explicitly spatial methods is needed. Further, the challenge of obtaining reliable welfare estimates for distance-based amenities highlighted by Ross et al (2009) remains: Even when multiple distance points or trend surfaces are included in the model, as in this study, the welfare estimates across non-spatial and spatial methods remained particularly unstable compared to other locational attributes. The need to build on existing research to further incorporate flexible functional forms in hedonic models and measure locational attributes in more sophisticated ways (e.g., at different scales and taking interactions between locational attributes into account) was already mentioned above.…”

Section: Resultsmentioning

confidence: 88%

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The welfare benefit of a home’s location: an empirical comparison of spatial and non-spatial model estimates

2011

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This article compares results from non-spatial and new spatial methods to examine the reliability of welfare estimates (direct and multiplier effects) for locational housing attributes in Seattle, WA. In particular, we assess if OLS with spatial fixed effects is able to account for the spatial structure in a way that represents a viable alternative to spatial econometric methods. We find that while OLS with spatial fixed effects accounts for more of the spatial structure than simple OLS, it does not account for all of the spatial structure. It thus does not present a viable alternative to the spatial methods. Similar to existing comparisons between results from non-spatial and established spatial methods, we also find that OLS generates higher coefficient and direct effect estimates for both structural and locational housing characteristics than spatial methods do. OLS with spatial fixed effects is closer to the spatial estimates than OLS without fixed effects but remains higher. Finally, a comparison of the direct effects with locally weighted regression results highlights spatial threshold effects that are missed in the global models. Differences between spatial estimators are almost negligible in this study.

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Section: The Robustness Of Mwtp Resultssupporting

confidence: 89%

Section: Resultsmentioning

confidence: 88%

The welfare benefit of a home’s location: an empirical comparison of spatial and non-spatial model estimates

2011

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“…The table reports regression results for the three models mentioned earlier, that is the OLS 14 More suitable variables than distance may be devised. In a recent study, Ross et al (2009) show that the effects of distances to amenities on housing prices are generally not consistent indicators of the true price impact of that amenity. Due to space limitations and as our focus is on the acreage of open space, we do run any further tests about any alternative of the distance variable.…”

Section: Resultsmentioning

confidence: 97%

“…14 14 More suitable variables than distance may be devised. In a recent study, Ross et al. (2009) show that the effects of distances to amenities on housing prices are generally not consistent indicators of the true price impact of that amenity.…”

mentioning

confidence: 99%

Estimating the demand for public open space: Evidence from North Carolina municipalities

Wang

Thill

Meentemeyer

2012

Papers in Regional Science

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This paper empirically identifies socio‐economic, physical, and geographic factors of the demand for open space in the state of North Carolina in the United States. Estimated coefficients suggest that spatial dependency exists in open space demand and that open space is a normal good. The paper provides the first empirical investigation of how open space demand is affected by local weather conditions. It is found that the demand has a statistically significant substitution relationship with nice weather. We discuss the socio‐economic rationale for the estimated demand models within the regional context of North Carolina and point to some relevant policy implications. Resumen. Este artículo identifica empíricamente los factores socioeconómicos, físicos y geográficos de la demanda de espacios al aire libre en el estado de Carolina del Norte en los Estados Unidos. Los coeficientes estimados sugieren que existe una dependencia espacial en la demanda de espacios al aire libre y que los espacios al aire libre son un bien normal. El artículo ofrece la primera investigación empírica sobre como se ve afectada la demanda de espacios al aire libre por las condiciones meteorológicas locales. Se ha encontrado que la demanda tiene una relación de substitución estadísticamente significativa con una meteorología benigna. Discutimos el fundamento socioeconómico de los modelos de demanda estimados dentro del contexto regional de Carolina del Norte e indicamos varias implicaciones relevantes para la formulación de políticas.

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“…Measuring park density combines the commonly used distance and size measures in other studies rather than examining those relationships separately. That construct of proximity alleviates potential identity problems associated with distance to amenity measures (see Ross, Farmer, & Lipscomb, 2011).…”

Section: Analytical Frameworkmentioning

confidence: 99%

The implicit price of urban public parks and greenways: a spatial-contextual approach

Payton

Ottensmann

2014

Journal of Environmental Planning and Management

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Abstract:This paper examines the value residents place on public parks in a mid-sized urban area. The analysis makes a direct contribution to the literature by examining the extent to which spatial and neighborhood context is related to the house price premium or discount associated with public recreational opportunities, natural resource areas, and urban greenways. The analysis shows that the value of public parks and greenways varies across space, neighborhood context, and park type. Community area fixedeffects are included to bolster the findings. The findings indicate that park and greenway investment should be planned and managed contextually in urban areas. Park planners can use these findings to inform public policy debates over park investment and, perhaps, support efforts focused on comprehensive neighborhood planning.

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Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions

Abstract: Hedonic, Distance, Sensitivity analysis, R0, Q5, C8,

Cited by 21 publications

References 12 publications

The welfare benefit of a home’s location: an empirical comparison of spatial and non-spatial model estimates

The welfare benefit of a home’s location: an empirical comparison of spatial and non-spatial model estimates

Estimating the demand for public open space: Evidence from North Carolina municipalities

The implicit price of urban public parks and greenways: a spatial-contextual approach

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