Estimating Ricardian Models with Panel Data
33 Pages Posted: 20 Jul 2011
Date Written: July 20, 2011
Many non-market valuation models, such as the Ricardian model, have been estimated using cross sectional methods with a single year of data. Although multiple years of data should increase the robustness of such methods, repeated cross sections suggest the results are not stable. We argue that repeated cross sections do not properly specify the model. Panel methods that correctly specify the Ricardian model are stable over time. The results suggest that many cross sectional methods including hedonic studies and travel cost studies could be enhanced using panel data.
Keywords: climate change, impacts, agriculture, hedonic models
JEL Classification: Q1, Q12, Q51, Q54
Suggested Citation: Suggested Citation