Working Paper: NBER ID: w15226
Authors: James J. Heckman; Rosa L. Matzkin; Lars Nesheim
Abstract: This paper studies the identification and estimation of preferences and technologies in equilibrium hedonic models. In it, we identify nonparametric structural relationships with nonadditive heterogeneity. We determine what features of hedonic models can be identified from equilibrium observations in a single market under weak assumptions about the available information. We then consider use of additional information about structural functions and heterogeneity distributions. Separability conditions facilitate identification of consumer marginal utility and firm marginal product functions. We also consider how identification is facilitated using multimarket data.
Keywords: No keywords provided
JEL Codes: C14; D41; D58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| equilibrium price function (D41) | willingness to pay for counterfactual transactions (D46) |
| unobserved heterogeneity (C21) | selection problem (C52) |
| workers choosing lower-risk jobs (J28) | higher required compensation for accepting higher risk (J33) |
| identification of structural parameters of buyers and sellers (D49) | analysis of general equilibrium effects of policy changes (D58) |
| data from a single market (Y10) | identification of marginal utility and marginal product functions (D24) |
| data from multiple markets (G15) | identification of models not identifiable in a single cross-section (C30) |