Econometrica: Jul 1988, Volume 56, Issue 4
Hedonic Prices and the Benefits of Public Projects
Yoshitsugu KanemotoScotchmer 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