Authors
James C Murdoch, Mark A Thayer
Publication date
1988/6/1
Journal
Journal of Environmental Economics and Management
Volume
15
Issue
2
Pages
143-146
Publisher
Academic Press
Description
This paper investigates the validity of the hypothesis that the appropriate specification of the hedonic function should use mean levels of environmental quality. A test of the mean specification is constructed by estimating a hedonic equation with the probabilities of various levels of environmental quality entered as independent variables. The test indicates rejection of the mean specification. The results imply that benefit estimates based on the traditional mean model are likely to be biased and that efforts to improve the accuracy of hedonic methods should consider more complete measures of environmental quality.
Total citations
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Scholar articles
JC Murdoch, MA Thayer - Journal of Environmental Economics and Management, 1988