Publications [#164657] of Christopher D. Timmins

Journal Articles

1. K. Bishop and C. Timmins, Simple, Consistent Estimation of the Marginal Willingness to Pay Function: Recovering Rosen's Second Stage without Instrumental Variables, Duke University Department of Economics Working Paper (2008)
   (last updated on 2009/10/22)

   Abstract:
   Since the publication of Rosen's \textbackslashHedonic Prices and Implicit Markets", property value hedonics has been used extensively in the non-market valuation of environmental amenities, despite a number of important and well-known econometric problems. We propose a new approach to the estimation of the hedonic model that allows for exible and unobservably heterogeneous preferences while avoiding the endogeneity problems described by Epple (1987). Moreover, we do so without relying on the weak instrument strategies that have been typically used in the hedonic literature. We also demonstrate that these problems are not easily solved by way of simple preference inversion proce- dures, even with rich panel data on house purchases. Using data on ozone pollution in the Bay Area of California, we implement this estimator and nd that controlling for endogeneity bias has imporant implications for valuing non-marginal policy interven- tions.

   Keywords:
   Hedonic price function • MWTP • Rosen