02500cam a22002657 4500001000600000003000500006005001700011008004100028100001900069245012700088260006600215490004100281500001700322520130600339530006101645538007201706538003601778690018601814700002202000700002102022710004202043830007602085856003702161856003602198w9910NBER20170627135448.0170627s2003 mau||||fs|||| 000 0 eng d1 aEkeland, Ivar.10aIdentification and Estimation of Hedonic Modelsh[electronic resource] /cIvar Ekeland, James J. Heckman, Lars P. Nesheim. aCambridge, Mass.bNational Bureau of Economic Researchc2003.1 aNBER working paper seriesvno. w9910 aAugust 2003.3 aThis paper considers the identification and estimation of hedonic models. We establish that in an additive version of the hedonic model, technology and preferences are generically identified up to affine transformations from data on demand and supply in a single hedonic market. For a very general parametric structure, preferences and technology are fully identified. This is true under a strong assumption of statistical independence of the error term. It is also true under the weaker assumption of mean independence of the error term. Much of the confusion in the empirical literature that claims that hedonic models estimated on data from a single market are fundamentally underidentified is based on linearizations that do not use all of the information in the model. The exact economic model that justifies widely used linear approximations has strange properties so the approximation is doubly poor. A semiparametric estimation method is proposed that is valid when a statistical independence assumption is valid. Alternatively, under the weaker condition of mean independence instrumental variables estimators can be applied to identify technology and preference parameters from a single market. They are justified by nonlinearities that are generic features of equilibrium in hedonic models. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aC31 - Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions • Social Interaction Models2Journal of Economic Literature class.1 aHeckman, James J.1 aNesheim, Lars P.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w9910.4 uhttp://www.nber.org/papers/w991041uhttp://dx.doi.org/10.3386/w9910