This chapter focuses on neighborhood effects in housing markets. Households in effect choose neighborhood effects, or more generally social interactions, via their location decisions, which renders them endogenous. Across several classes of models that it examines, it emphasizes how we may...

Value estimates for environmental goods can be obtained by either estimating preference parameters as revealed through behavior related to some aspect of the amenity or using stated information concerning preferences for the good. In the environmental economics literature the stated preference...

One of the only places where environmental quality is traded on explicit markets is real estate. There are several techniques that can be used to study the effects of environmental quality on property values and infer willingness to pay for improvements. The most commonly used method is the...

Purpose ‒ The aim of this paper is to demonstrate the application of robust techniques to the estimation of hedonic house price indexes.Design/methodology/approach ‒ We use simulation analysis to compare an index estimated using ordinary least squares (OLS) with several indexes estimated...