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)

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