The suitability of hedonic models for cost-benefit analysis: evidence from commuting flows

Gjestland, A., McArthur, D. P. , Osland, L. and Thorsen, I. (2014) The suitability of hedonic models for cost-benefit analysis: evidence from commuting flows. Transportation Research Part A: Policy and Practice, 61, pp. 136-151. (doi:10.1016/j.tra.2014.01.006)

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Abstract

We compare two estimates of benefits arising from the construction of new bridges in south-west Norway. One estimate comes from a hedonic property value model. Rather than follow an approach which is strictly theoretically correct, we adopt Rosen’s simple first-stage approach. To investigate and validate whether this simplified approach gives a reasonable estimate, we compare it to an estimate derived from a travel demand model. We find that a variant of an ex post hedonic house price model gives very similar estimates to the estimates from the travel demand model. This supports a hypothesis that the simplistic hedonic approach is reasonable.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Mcarthur, Dr David
Authors: Gjestland, A., McArthur, D. P., Osland, L., and Thorsen, I.
Subjects:H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
College/School:College of Social Sciences > School of Social and Political Sciences
Journal Name:Transportation Research Part A: Policy and Practice
Publisher:Elsevier Ltd.
ISSN:0965-8564
ISSN (Online):1879-2375

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