Wednesday, October 28, 2009

On Distance Variables in Hedonic Regressions

My paper "Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions" with Michael Farmer and Cliff Libscomb is now forthcoming in the Journal of Real Estate and Finance Economics. It's intended audience is for researchers doing applied work that involve estimating the determinants of housing prices.

If you are considering using a "distance to" variable in a housing demand regression, below the fold you can find the cliff notes from the paper on why direct interpretation of these variables is misleading.

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