Confronting Price Endogeneity in a Duration Model of Residential Subdivision Development
研究提出一种结合控制函数与持续时间模型的新方法，处理土地利用模型中价格的内生性问题，发现忽略内生性会导致价格弹性估计偏差，进而影响绿色税收等政策的有效性评估。
Summary Spatial equilibrium implies that distant factors are correlated with local prices through market mechanisms. Using this logic, we develop a novel approach for handling price endogeneity in land use models. We combine a control function approach with a duration model to identify the impact of prices in influencing land conversion. We find that failure to control for endogeneity results in large differences in elasticities. Specifically, we find an elasticity of 2.06 compared to 0.67 in a model without instrumentation. This difference is significant as it suggests that price‐based policies, such as ‘green taxes’, are likely more effective in altering development patterns than would be expected from a naïve estimation that ignores price endogeneity. Copyright © 2016 John Wiley & Sons, Ltd.