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Semiparametric hedonic price models: assessing the effects of agricultural nonpoint source pollution
Author(s) -
Bontemps Christophe,
Simioni Michel,
Surry Yves
Publication year - 2008
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.1022
Subject(s) - nonparametric statistics , econometrics , benchmark (surveying) , parametric statistics , additive model , component (thermodynamics) , specification , hedonic pricing , computer science , semiparametric regression , semiparametric model , economics , statistics , mathematics , geography , physics , geodesy , thermodynamics
In the area of environmental analysis using hedonic price models, we investigate the performance of various nonparametric and semiparametric specifications. The proposed model specifications are made up of two parts: a linear component for house characteristics and a non‐(semi)parametric component representing the nonlinear influence of environmental indicators on house prices. We adopt a general‐to‐specific search procedure, based on recent specification tests comparing the proposed specifications with a fully nonparametric benchmark model, to select the best model specification. An application of these semiparametric models to rural districts indicates that pollution resulting from intensive livestock farming has a significant nonlinear impact on house prices. Copyright © 2008 John Wiley & Sons, Ltd.