Replication data for: A Rational Expectations Approach to Hedonic Price Regressions with Time-Varying Unobserved Product Attributes: The Price of Pollution

Patrick Bajari, Kyoo Il Kim, Christopher Timmins & Jane Cooley Fruehwirth
We propose a new strategy for a pervasive problem in the hedonics literature: recovering hedonic prices in the presence of time-varying correlated unobservables. Our approach relies on an assumption about home buyer rationality, under which prior sales prices can be used to control for time-varying unobservable attributes of the house or neighborhood. Using housing transactions data from California's Bay Area between 1990 and 2006, we apply our estimator to recover marginal willingness to pay for...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.