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Some empirical issues in the estimation of market values of environmental amenities

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1997
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Facultad de Ciencias Económicas y Empresariales. Instituto Complutense de Análisis Económico (ICAE)
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This study presents consistent, and more efficient estimates compared with OLS and IV, for market values of amenities. The gain in efficiency is based on the use of a number of different indicators for the same amenity. The theory is derived from on a Lancasterian model that forces the functional form to be linear in characteristics. The empirical structure based on latent variables is applied to a model on property values of residential housing using different indicators for neighborhood quality. The dependent variable (property market value) is also treated as a latent variable for which two measures are available. The model is estimated using data from the U.S. American Housing Survey. The effect of quality of neighborhood on property values consistently estimated, is positive and significant. Variances of errors of measurement, and variances of the latent structures arepositive and significant without imposing nonnegativity restrictions.
Este estudio presenta estimaciones consistentes, y más eficientes comparadas con MeO y VI, de valores de mercado de bienes ambientales (amenities). La ganancia en eficiencia está basada en el uso de varios indicadores para el mismo bien. La teoría se deriva de un modelo Lancasteriano, que impone la linealidad en características de la forma de 'la ecuación de precio. La estructura empírica basada en variables latentes es aplicada a un modelo sobre valores de propiedad residencial usando diferentes indicadores de calidad de vecindario. La variable dependiente (valor de mercado de la propiedad) está tratada también como una variable latente para la cual se utilizan dos mediciones. El modelo se estima con datos provenientes de la encuesta de hogares en EE.UU. (U.S. American Housing Survey). El efecto de calidad de vecindario sobre el valor de la propiedad estimado en fonna consistente, es positivo y significativo. La varianza de los errores de medida, y las varianzas de las estructuras latentes son positivas y significativas sin imponer ninguna restricción de no negatividad.
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