Identification and Estimation of Hedonic Models

Ekeland, Ivar; Heckman, James J.; Nesheim, Lars

Ekeland, Ivar; Heckman, James J.; Nesheim, Lars (2004), Identification and Estimation of Hedonic Models, The Journal of Political Economy, 112, S1, p. S60-S109. http://dx.doi.org/10.1086/379947

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Type

Article accepté pour publication ou publié

Date

2004

Journal name

The Journal of Political Economy

Volume

112

Number

Publisher

University of Chicago Press

Pages

S60-S109

Abstract (EN)

This paper considers the identification and estimation of hedonic models. We establish that in an additive version of the hedonic model, technology and preferences are generically nonparametrically identified from data on demand and supply in a single hedonic market. The empirical literature that claims that hedonic models estimated on data from a single market are fundamentally underidentified is based on arbitrary linearizations that do not use all the information in the model. The exact economic model that justifies linear approximations is unappealing. Nonlinearities are generic features of equilibrium in hedonic models and a fundamental and economically motivated source of identification.

Subjects / Keywords

additive hedonic models; semiparametric estimation

JEL

C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models