Econometrica Vol. 56 No. 4 1988
Hedonic Prices and the Benefits of Public Projects
Abstract
S. Scotchmer has shown that, even if the population is homogeneous, hedonic prices do not correctly measure long-run benefit s of a large public project. This paper examines the direction of err ors and shows that the use of cross-sectional land rent differentials leads to overestimation of the benefits. The short-run benefits with fixed lot size are also considered.
- DOI
- 10.2307/1912708
- Volume
- 56
- Issue
- 4
- Pages
- 981
- Sources
- bibtex:phds-export.bib openalex crossref