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Estimating Equilibrium Models of Sorting Across Locations AgEcon
Bayer, Patrick; Timmins, Christopher.
With the growing recognition of the role played by geography in all sorts of economic problems, there is strong interest in measuring the size and scope of local spillovers (i.e., simple anonymous agglomeration or congestion effects, or more complicated interactions between individuals or firms of specific types). It is well-understood, however, that such spillovers cannot be distinguished from unobservable local attributes using just the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. This approach relies on an instrumental variables strategy derived from the internal...
Tipo: Working or Discussion Paper Palavras-chave: Local spillovers; Location choice; Economic geography; Natural advantage; Social interactions; Network effects; Endogenous sorting; Discrete choice models; Agglomeration; Congestion; Institutional and Behavioral Economics; H7; R0; R2; R3.
Ano: 2003 URL: http://purl.umn.edu/28448
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A Note on the Equilibrium Properties of Locational Sorting Models AgEcon
Bayer, Patrick; Timmins, Christopher.
A central feature of many models of location choice – whether of firms or households, within or across cities – is the role of local interactions or spillovers, whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in equilibrium. The main goal of this paper is to develop the equilibrium properties of a broadly applicable and readily estimable class of sorting models that allow the location decision to depend on both fixed local attributes (including unobserved attributes) and such local interactions. In particular, we prove uniqueness in the case of congestion effects and use a series of simulations to demonstrate that a unique equilibrium is more...
Tipo: Working or Discussion Paper Palavras-chave: Local spillovers; Social interactions; Economic geography; Natural advantage; Endogenous sorting; Discrete choice models; Agglomeration; Congestion; Random utility; Industrial Organization; H0; R0; R2; R3.
Ano: 2003 URL: http://purl.umn.edu/28378
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Estimating the Amenity Costs of Global Warming in Brazil: Getting the Most from Available Data AgEcon
Timmins, Christopher.
This paper develops a theoretically consistent technique for valuing non-marketed local attributes using compensating income differentials in the absence of housing market data. The individual’s indirect utility function is identified with aggregate data describing equilibrium location decisions, and this function is used in place of the unidentified equation describing how housing prices are determined. The model is used to value climate amenities in Brazil, where such data problems are prevalent. Similar problems arise in other developing countries, particularly when one looks outside of the largest cities.
Tipo: Working or Discussion Paper Palavras-chave: Wage-hedonics; Discrete-choice analysis; Climate amenity; Global warming; Environmental Economics and Policy; R1; C35; O54.
Ano: 1999 URL: http://purl.umn.edu/28491
Registros recuperados: 3
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