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Something in the Water? Testing for Groundwater Quality Information in the Housing Market

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  • McLaughlin, Patrick A.

Abstract

I test the level of information regarding possible groundwater contamination in the residential real estate market in Washington County, Minnesota. An approximately seven square-mile trichloroethylene plume has affected hundreds of households’ water supplies since at least 1988 in the region. I find that homeowners were initially well-informed by market forces, but were later somewhat misinformed by government actions regarding the potential of water contamination from the plume. A disclosure law passed in 2003 may have added new, low-cost, and imperfect information to the market that could explain the change in informational awareness.

Suggested Citation

  • McLaughlin, Patrick A., 2011. "Something in the Water? Testing for Groundwater Quality Information in the Housing Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-20, August.
    • Handle: RePEc:ags:jlaare:117207
    DOI: 10.22004/ag.econ.117207
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    1. Perry, Gregory M., 2012. "WAEA Presidential Address Deciding Where to Publish: Some Observations on Journal Impact Factor and Article Influence Score," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), pages 1-14.
    2. John Chamblee & Carolyn Dehring & Craig Depken & Joseph Nicholson, 2015. "Water Contamination, Land Prices, and the Statute of Repose," The Journal of Real Estate Finance and Economics, Springer, vol. 51(3), pages 398-414, October.

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