Working Paper: NBER ID: w9895
Authors: James J. Heckman; Rosa Matzkin; Lars Nesheim
Abstract: Making use of restrictions imposed by equilibrium, theoretical progress has been made on the nonparametric and semiparametric estimation and identification of scalar additive hedonic models (Ekeland, Heckman, and Nesheim, 2002) and scalar nonadditive hedonic models (Heckman, Matzkin, and Nesheim, 2002). However, little is known about the practical aspects of estimating such models or of the characteristics of equilibrium in such models. This paper presents computational and analytical results that fill some of these gaps. We simulate and estimate examples of equilibrium in the additive hedonic models and provide evidence on the performance of several estimation techniques. We also simulate examples of equilibria in nonadditive models and provide evidence on the performance of the nonadditive estimation techniques developed in Heckman, Matzkin, and Nesheim (2002).
Keywords: No keywords provided
JEL Codes: C51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Estimation techniques used (C51) | Accuracy of parameter estimates (C51) |
| Nonparametric techniques (C14) | Successful estimation of parameters (C51) |
| Consumer characteristics and job types (J29) | Pricing function (D49) |
| Equilibrium conditions (C62) | Effective parameter estimation (C51) |