Difference-in-Differences Hedonics
Cross-sectional estimates of hedonic price functions theoretically recover marginal values for characteristics but face endogeneity problems. Consequently, economists have introduced difference-in-differences and other quasi-experimental econometric methods into hedonic models. Unfortunately, the welfare interpretation of these estimands has not been clear. This paper shows that quasi-experimental hedonics can identify the movement along the ex post price function. It…