Bajari, Patrick; Fruehwirth, Jane Cooley; Kim, Kyoo il; … - In: American Economic Review 102 (2012) 5, pp. 1898-1926
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...