A Revealed Preference Index of Urban Amenities: Using Travel Demand as a Proxy

30 Pages Posted: 29 May 2020

See all articles by Daniel Broxterman

Daniel Broxterman

Florida State University, College of Business

Chun Kuang

University of International Business and Economics (UIBE) - School of Banking and Finance

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Date Written: June 2019

Abstract

We introduce an index of urban amenities based on hotel night stays that can rank most US metros for the years 1990 through 2015. This naive index can be used on its own to study changes in amenity level or with other measures to reduce omitted variable bias. Researchers can also use the index to create panel datasets from more sophisticated cross‐sectional indexes. Empirical testing shows the bundle of amenities associated with hotel stays has substantial effects on variation in housing prices across cities and time, validating our proxy variable approach. Testing for an association with wages is inconclusive.

Keywords: amenities, compensating differentials

Suggested Citation

Broxterman, Daniel and Kuang, Chun, A Revealed Preference Index of Urban Amenities: Using Travel Demand as a Proxy (June 2019). Journal of Regional Science, Vol. 59, Issue 3, pp. 508-537, 2019, Available at SSRN: https://ssrn.com/abstract=3611123 or http://dx.doi.org/10.1111/jors.12439

Daniel Broxterman (Contact Author)

Florida State University, College of Business ( email )

821 Academic Way
RBA 417
Tallahassee, FL 32306-1110
United States
8506448221 (Phone)

Chun Kuang

University of International Business and Economics (UIBE) - School of Banking and Finance ( email )

No.10, Huixindong Street
Chaoyang District
Beijing, 100029
China

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