NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

On the Estimation of Structural Hedonic Price Models

James N. Brown, Harvey S. Rosen

NBER Technical Working Paper No. 18
Issued in May 1982
NBER Program(s):   PE

MANY COMMODITIES can be viewed as bundles of individual attributes for which no explicit markets exist. It is often of interest to estimate structural demand and supply functions for these attributes, but the absence of directly observable attribute prices poses a problem for such estimation. In an influential paper published several years ago, Rosen [3] proposed an estimation procedure to surmount this problem. This procedure has since been used in a number of applications (see, for example, Harrison and Rubinfeld [2] or Witte, et al. [4]). The purpose of this note is to point out certain pitfalls in Rosen's procedure, which, if ignored, could lead to major identification problems. In Section 2 we summarize briefly the key aspects of Rosen's method as it has been applied in the literature. Section 3 discusses the potential problems inherent in this procedure and provides an example. Section 4 concludes with a few suggestions for future research.

download in pdf format
   (468 K)

email paper

This paper is available as PDF (468 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/t0018

Published: Brown, James N. and Rosen, Harvey S. "On the Estimation of Structural Hedonic Price Models." Econometrica, Vol. 50, No. 3, (May 1982), pp. 765-768.

Users who downloaded this paper also downloaded these:
Ekeland, Heckman, and Nesheim w9910 Identification and Estimation of Hedonic Models
Tauchen and Witte t0271 Estimating Hedonic Models: Implications of the Theory
Ohta and Griliches Automobile Prices Revisited: Extensions of the Hedonic Hypothesis
Chay and Greenstone w6826 Does Air Quality Matter? Evidence from the Housing Market
Pakes w8715 A Reconsideration of Hedonic Price Indices with an Application to PC's
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us