Comment: Sequential Moment Restrictions in Panel Data |
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Authors: | Gary Chamberlain |
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Affiliation: | Department of Economics , Harvard University , Cambridge , MA , 02138 |
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Abstract: | We present a three-stage, nonparametric estimation procedure to recover willingness to pay for housing attributes. In the first stage we estimate a nonparametric hedonic home price function. In the second stage we recover each consumer's taste parameters for product characteristics using first-order conditions for utility maximization. Finally, in the third stage we estimate the distribution of household tastes as a function of household demographics. As an application of our methods, we compare alternative explanations for why blacks choose to live in center cities while whites suburbanize. |
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Keywords: | Demand estimation Hedonics Heterogeneity Nonparametrics Product differentiation Racial segregation |
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