Hedonic Valuation of Environmental Amenities and Issues of Model Selection

The nested logit model is applied to the Chicago housing data set, with the goal of valuing environmental amenities. Four alternative hierarchical nestings based on dwelling, neighborhood, and city attributes are considered, and a sampling rule satisfying McFadden's uniform conditioning property is adopted. The benefit estimates of dwelling and city attributes are found to be less sensitive, while those of neighborhood attributes are found to be more sensitive to alternative nesting strategies. The effects of household demographics on parameter estimates generally conform to standard notions. A comparison of the model with the standard two-step hedonic model reveals that the benefit estimates are consistently lower in the case of the former.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2015

Author dc:creator

• Chattopadhyay, Sudip

Contributors dc:contributor

• Brueckner, Jan K.

• Environmental Sciences

Language dc:language

eng

Identifier

(MiAaPQ)AAI9812550

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/85621