Semiparametric hedonic price models: assessing the effects of agricultural nonpoint source pollution

Abstract

In the area of environmental analysis using hedonic price models, we investigate the performance of various nonparametric and semiparametric specifications. The proposed model specifications are made up of two parts: a linear component for house characteristics and a non-(semi)parametric component representing the nonlinear influence of environmental indicators on house prices. We adopt a general-to-specific search procedure, based on recent specification tests comparing the proposed specifications with a fully nonparametric benchmark model, to select the best model specification. An application of these semiparametric models to rural districts indicates that pollution resulting from intensive livestock farming has a significant nonlinear impact on house prices. Copyright (C) 2008 John Wiley & Sons, Ltd.

Keywords

Hedonic price models; semiparametric methods; agricultural pollution

Published in

Journal of Applied Econometrics
2008, volume: 23, number: 6, pages: 825-842
Publisher: JOHN WILEY & SONS LTD

SLU Authors

• Surry, Yves

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Agricultural Science
Environmental Sciences and Nature Conservation

Publication identifier

• DOI: https://doi.org/10.1002/jae.1022

Permanent link to this page (URI)

https://res.slu.se/id/publ/19833