Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79297
Authors: 
Heckman, James J.
Matzkin, Rosa Liliana
Nesheim, Lars
Year of Publication: 
2005
Series/Report no.: 
cemmap working paper, Centre for Microdata Methods and Practice CWP03/05
Abstract: 
We analyze equilibria in hedonic economies and study conditions that lead to identification of structural preference parameters in hedonic economies with both additive and nonadditive marginal utility and marginal product functions. The latter class is more general, allows for heterogeneity in the curvature of consumer utility, and can result in conditions that lead to bunching. Such bunching has been largely ignored in the previous literature. We then present methods to estimate marginal utility and marginal product functions that are nonadditive in the unobservable random terms, using observations from a single hedonic equilibrium market. These methods are important when statistical tests reject additive specifications or when prior information suggests that consumer or firm heterogeneity in the curvature of utility or production functions is likely to be significant. We provide conditions under which these types of utility and production functions are nonparametrically identified, and we propose nonparametric estimators for them. The estimators are shown to be consistent and asymptotically normal. When the assumptions required to use single market methods are unjustified, we show how multimarket data can be used to estimate the structural functions.
Subjects: 
hedonic models , hedonic equilibrium , nonadditive models , bunching , identification , nonparametric estimation
JEL: 
C14
D41
D58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.