Department of Economics
Arizona State University
PO Box 879801
Tempe, AZ 85287-9801
Information about this author at RePEc
NBER Working Papers and Publications
|August 2018||Hazed and Confused: The Effect of Air Pollution on Dementia|
with Jonathan D. Ketcham, Nicolai V. Kuminoff: w24970
We test whether long-term exposure to air pollution degrades human capital by causing dementia. We link fifteen years of Medicare records for 6.9 million adults age 65 and older to the EPA’s air quality monitoring network and track the evolution of individuals’ health, onset of dementia, financial decisions, and cumulative residential exposure to fine-particulate air pollution (PM2.5). Our instrumental variables framework capitalizes on quasi-random variation in pollution exposure due to the EPA’s 2005 designation of nonattainment counties for PM2.5. We find that a 1 microgram-per-cubic-meter increase in average decadal exposure (9.1% of the mean) increases the probability of receiving a dementia diagnosis by 1.3 percentage points (6.7% of the mean). This finding is consistent with hypothe...
|November 2011||Hedonic Prices and Implicit Markets: Estimating Marginal Willingness to Pay for Differentiated Products Without Instrumental Variables|
with Christopher Timmins: w17611
The hedonic model of Rosen (1974) has become a workhorse for valuing the characteristics of differentiated products despite a number of well-documented econometric problems. For example, Bartik (1987) and Epple (1987) each describe a source of endogeneity in the second stage of Rosen's procedure that has proven difficult to overcome. In this paper, we propose a new approach for recovering the marginal willingness-to-pay function that altogether avoids these endogeneity problems. Applying this estimator to data on large changes in violent crime rates, we find that marginal willingness-to-pay increases by ten cents with each additional violent crime per 100,000 residents.