Econometrica: Jul 1988, Volume 56, Issue 4

Hedonic Prices and the Benefits of Public Projects<981:HPATBO>2.0.CO;2-W
p. 981-989

Yoshitsugu Kanemoto

Scotchmer has shown that, even if the population is homogeneous, hedonic prices do not correctly measure long-run benefits of a large public project. This paper examines the direction of errors caused by the use of cross-sectional land rent differentials in benefit estimation. The short-run benefits with fixed lot size are also considered.

Log In To View Full Content