Bajari, Patrick; Cooley, Jane; Kim, Kyoo il; Timmins, … - National Bureau of Economic Research (NBER) - 2010
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 homebuyer rationality, under which prior sales prices can be used to control for...