Date of This Version
July 2011
Abstract
Many nonmarket valuation models, such as the Ricardian model, have been estimated using cross sectional methods with a single year of data. Although multiple years of data should increase the robustness of such methods, repeated cross sections suggest the results are not stable. We argue that repeated cross sections do not properly specify the model. Panel methods that correctly specify the Ricardian model are stable over time. The results suggest that many cross sectional methods including hedonic studies and travel cost studies could be enhanced using panel data.
Recommended Citation
Massetti, Emanuele and Mendelsohn, Robert, "Estimating Ricardian Models With Panel Data" (July 15, 2011). Fondazione Eni Enrico Mattei Working Papers. Paper 601.
https://services.bepress.com/feem/paper601