Where Does Noise Fall on People? Evidence from Atlanta

Pricing Behaviour and Non-Price Characteristics in the Airline Industry (J. Peoples, ed.), 2012, 3, pp. 275-295.

Federal Reserve Bank of St. Louis Working Paper No. 2009-058A

29 Pages Posted: 30 Nov 2009 Last revised: 8 Aug 2016

Jeffrey P. Cohen

University of Connecticut - School of Business

Cletus C. Coughlin

Federal Reserve Bank of St. Louis - Research Division

Date Written: August 16, 2010

Abstract

Spatial heterogeneity of the determinants of airport noise is explored using houses sold near the Atlanta airport. Ordered probit locally weighted regressions (OPLWR) produce results substantively different than those using standard ordered probit. We find notable differences in the signs and magnitudes of the parameter estimates for different individual observations using OPLWR. For example, using a standard ordered probit model, the coefficient estimate for the connection between the percentage of neighborhood households headed by a Hispanic and noise is double the average of the OPLWR estimates. Moreover, while the standard ordered probit point estimate is positive, 37 percent of the estimates using OPLWR are negative. Even in relatively small areas, the OPLWR results imply that the standard ordered probit model can generate biased estimates due to ignored heterogeneity among individual houses.

Keywords: airport noise, spatial heterogeneity, ordered probit, locally weighted regression

JEL Classification: Q53, R41, C31

Suggested Citation

Cohen, Jeffrey P. and Coughlin, Cletus C., Where Does Noise Fall on People? Evidence from Atlanta (August 16, 2010). Pricing Behaviour and Non-Price Characteristics in the Airline Industry (J. Peoples, ed.), 2012, 3, pp. 275-295.; Federal Reserve Bank of St. Louis Working Paper No. 2009-058A. Available at SSRN: https://ssrn.com/abstract=1513365 or http://dx.doi.org/10.2139/ssrn.1513365

Jeffrey P. Cohen

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Cletus C. Coughlin (Contact Author)

Federal Reserve Bank of St. Louis - Research Division ( email )

411 Locust St
Saint Louis, MO 63011
United States

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