Land Markets and the Value of Water: Hedonic Analysis Using Repeat Sales of Farmland
利用加州圣华金谷农田重复销售的面板数据，通过固定效应享乐回归估计灌溉水对土地所有者的价值，发现传统横截面回归会低估水价值。
The lack of robust water markets makes it difficult to value irrigation water. Because water rights are appurtenant to land, it is possible to infer the value of water from observed differences in the market price of land. We use panel data on repeat farmland sales in California's San Joaquin Valley to estimate a hedonic regression equation with parcel fixed effects. This controls for sources of omitted variables bias and allows us to recover the value of irrigation water to landowners in our sample. We show that a more traditional cross‐sectional regression results in an artificially low value of irrigation water.