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Hedonic Prices and the Benefits of Public Projects

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  • Yoshitsugu Kanemoto

Abstract

When lot side is endogenous, hedonic prices do not provide a correct benefit measure of a large public project even if population is homogeneous. Except for some polar cases where they yield correct estimates, the use of hedonic prices results in over-estimation. The results are extended to cases of heterogeneous populations. The short-run benefits with fixed lot size are also examined.

Suggested Citation

  • Yoshitsugu Kanemoto, 1985. "Hedonic Prices and the Benefits of Public Projects," Working Paper 617, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:617
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    References listed on IDEAS

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    5. Quigley, John M., 1982. "Nonlinear budget constraints and consumer demand: An application to public programs for residential housing," Journal of Urban Economics, Elsevier, vol. 12(2), pages 177-201, September.
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