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Estimating the General Equilibrium Benefits of Large Changes in Spatially Delineated Public Goods. (2001)

by H Sieg, V K Smith, S Banzhaf, R Walsh
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Air Pollution and Infant Health: What Can We Learn from California’s Recent Experience?” NBER Working Paper No

by Janet Currie, Matthew Neidell
"... We examine the impact of air pollution on infant death in California over the 1990s. Our work offers several innovations: first, most previous studies examine populations subject to far greater levels of pollution. Second, many studies examine a single pollutant in isolation. We examine three “crite ..."
Abstract - Cited by 110 (17 self) - Add to MetaCart
We examine the impact of air pollution on infant death in California over the 1990s. Our work offers several innovations: first, most previous studies examine populations subject to far greater levels of pollution. Second, many studies examine a single pollutant in isolation. We examine three “criteria ” pollutants in a common framework. Third, we use rich individual-level data and pollution measured at the weekly level. Our most novel finding is a significant effect of CO on infant mortality: we find that reductions in carbon monoxide over the 1990s saved approximately 1000 infant lives in California. Air quality regulations are costly to both producers and consumers, and the optimal level of pollution abatement is hotly contested. Pollution abatement is often justified as something that will promote health, yet there is still much to be learned about the specific health effects. The EPA did not include infant mortality in the primary quantitative benefit analysis of the 1990 Clean Air Act Amendments in 1999 [Environmental Protection

Do People Vote with Their Feet? An Empirical Test of Tiebout’s Mechanism

by H. Spencer Banzhaf, Randall P. Walsh - American Economic Review , 2008
"... Abstract: Tiebout’s (1956) suggestion that people “vote with their feet ” to find the community that provides their optimal bundle of taxes and public goods has played a central role in the theory of local public finance over the past 50 years. Given the central importance of Tiebout's insight ..."
Abstract - Cited by 76 (2 self) - Add to MetaCart
Abstract: Tiebout’s (1956) suggestion that people “vote with their feet ” to find the community that provides their optimal bundle of taxes and public goods has played a central role in the theory of local public finance over the past 50 years. Given the central importance of Tiebout's insights, there have been surprisingly few direct tests of his premise. In this paper, we use a Tiebout equilibrium model to derive testable hypotheses about changes in local community demographics. The model clearly predicts increased population density in neighborhoods that experience an exogenous increase in public goods, but yields only tentative predictions about the effect on neighborhood composition. To test these hypotheses, we use a difference-in-difference model to identify the effect of initial pollution levels and changes in local pollution on popula-tion and demographic composition. Our results provide strong empirical support for the notion that households “vote with
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...g empirical literature has leveraged the equilibrium properties of the Tieboutsmodel to identify general equilibrium models of household sorting (e.g. Bayer, McMillan, andsReuben 2005, Ferreyra 2005, =-=Sieg et al. 2004-=-, and Timmins 2003).sGiven the central importance of Tiebout's insights, there have been surprisingly few direct tests of his premise.sExisting tests of the Tiebout model can be grouped into two broad...

The General Equilibrium Incidence of Environmental Taxes,” Working

by Don Fullerton, Garth Heutel, Don Fullerton, Garth Heutel , 2004
"... is preliminary, and not for quotation, but comments are welcome. We are grateful for ..."
Abstract - Cited by 57 (17 self) - Add to MetaCart
is preliminary, and not for quotation, but comments are welcome. We are grateful for

Estimating the Effects of Private School Vouchers in Multi-District Economies

by Maria Marta Ferreyra, Arthur Goldberger, John Kennan, Yuichi Kitamura, Bob Miller, Tom Nechyba - University of Wisconsin-Madison , 1992
"... This paper estimates a general equilibrium model of school quality and household residential and school choice for economies with multiple public school districts and private (religious and non-sectarian) schools. The estimates are used to simulate two large-scale private school voucher programs in ..."
Abstract - Cited by 54 (6 self) - Add to MetaCart
This paper estimates a general equilibrium model of school quality and household residential and school choice for economies with multiple public school districts and private (religious and non-sectarian) schools. The estimates are used to simulate two large-scale private school voucher programs in the Chicago metropolitan area: universal vouchers, and vouchers restricted to non-sectarian schools. In the simulations, both programs increase private school enrollment, and affect household residential choice. Under universal vouchers enrollment grows at all private schools, yet under non-sectarian vouchers private school enrollment expands less, and religious school enrollment declines with the voucher level. Fewer households benefit from non-sectarian vouchers. (JEL I22, H73, H42, C51). This paper is based on my PhD dissertation at the University of Wisconsin-Madison. I wish to thank my advisors Derek Neal, Steve Durlauf and Phil Haile for their guidance and encouragement. I am also grateful to Peter

State Dependence and Heterogeneity in Fishing Location Choice

by Martin D. Smith
"... This paper explores the classic distinction between state dependence and heterogeneity in repeated decisions. Specifically, it combines a Mixed Multinomial Logit model with a state dependence parameterization from the marketing literature on brand loyalty to study repeated fishing location choices o ..."
Abstract - Cited by 21 (0 self) - Add to MetaCart
This paper explores the classic distinction between state dependence and heterogeneity in repeated decisions. Specifically, it combines a Mixed Multinomial Logit model with a state dependence parameterization from the marketing literature on brand loyalty to study repeated fishing location choices of commercial sea urchin divers in California. The econometric model relies on simulation-based estimation. A surprising result emerges about the preference heterogeneity in the fleet; random preference parameters are statistically significant when state dependence is excluded from the model, but when it is included, behavioral responsiveness to economic variables appears more homogeneous in the fleet. A Monte Carlo study demonstrates how apparently spurious preference heterogeneity could arise in this setting as a result of autocorrelated catch rates. Implications for similar choice problems in recreation demand are discussed.

The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation

by Nicolai V. Kuminoff, V. Kerry Smith, Christopher Timmins , 2010
"... ..."
Abstract - Cited by 18 (6 self) - Add to MetaCart
Abstract not found
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...es that affect agents differently.sApplications of the new models have demonstrated that agent heterogeneity, endogenoussattributes, and feedback effects can all have first-order policy implications (=-=Sieg et al. 2004-=-; V.sKerry Smith et al. 2004; Maria Marta Fererrya 2007; Timmins 2007; Randall L. Walsh 2007;sNicolai V. Kuminoff 2009; H. Allen Klaiber and Daniel J. Phaneuf 2010b; Constant I.Tra 2010).sThese studie...

Decomposing the Structural Identification of Nonmarket Values

by Nicolai V. Kuminoff, I Thank V. Kerry Smith, Paul Fackler, Roger Von Haefen, Arik Levinson, Ray Palmquist, Dan Phaneuf, Chris Timmins - Journal of Environmental Economics and Management
"... gratefully acknowledged. ii ..."
Abstract - Cited by 14 (6 self) - Add to MetaCart
gratefully acknowledged. ii
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...ies [6, 10].sThe results can be usedsto predict the distributional welfare implications of future policy changes, while recognizing thatsa sufficiently large shock will induce some households to move =-=[24, 25]-=-.sEqually important,sthese models are capable of reflecting feedback effects between people and their surroundingsenvironment.sFor example, while people are affected by environmental amenities, their ...

The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets

by Nicolai V. Kuminoff, V. Kerry Smith, Christopher Timmins - FORTHCOMING IN JOURNAL OF ECONOMIC LITERATURE , 2012
"... Households “sort” across neighborhoods according to their wealth and their preferences for public goods, social characteristics, and commuting opportunities. The aggrega-tion of these individual choices in markets and in other institutions influences the supply of amenities and local public goods. ..."
Abstract - Cited by 11 (7 self) - Add to MetaCart
Households “sort” across neighborhoods according to their wealth and their preferences for public goods, social characteristics, and commuting opportunities. The aggrega-tion of these individual choices in markets and in other institutions influences the supply of amenities and local public goods. Pollution, congestion, and the quality of public education are examples. Over the past decade, advances in economic models of this sorting process have led to a new framework that promises to alter the ways we conceptualize the policy evaluation process in the future. These “equilibrium sorting ” models use the properties of market equilibria, together with information on household behavior, to infer structural parameters that characterize preference heterogeneity. The results can be used to develop theoretically consistent predictions for the welfare implications of future policy changes. Analysis is not confined to marginal effects or a partial equilibrium setting. Nor is it limited to prices and quantities. Sorting models can integrate descriptions of how non-market goods are generated, estimate how they affect decision making and, in turn, predict how they will be affected by future policies targeting prices or quantities. Conversely, sorting models can predict how equilibrium prices and quantities will be affected by policies that target product quality, information, or amenities generated by the
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...forspolicies that target public goods or other amenities that affect agents differently.sAgent heterogeneity, endogenous attributes, and feedback effects can all have first-orderspolicy implications (=-=Sieg et al. 2004-=-; V. Kerry Smith et al. 2004; Maria Marta Fererrya 2007;sTimmins 2007; Randall L. Walsh 2007; H. Spencer Banzhaf and Walsh 2008; Nicolai V. Kuminoff 2009; H. Allen Klaiber and Daniel J. Phaneuf 2010b;...

Valuing Risks of life and health. Towards Consistent Transfer Estimates in the European Union and Accession States. European Commission Workshop on Valuing Mortality and Valuing Morbidity: Nov 13 2000

by David Pearce , 2000
"... 4 VOSL meta-analyses ..."
Abstract - Cited by 10 (0 self) - Add to MetaCart
4 VOSL meta-analyses

Identification and Semiparametric Estimation of Equilibrium Models of Local Jurisdictions

by Dennis Epple, Michael Peress, Holger Sieg , 2010
"... We develop a new model of household sorting in a system of residential neighborhoods. We show that this model is partially identified without imposing parametric restrictions on the distribution of unobserved tastes for neighborhood quality and the shape of the indirect utility function. The proof o ..."
Abstract - Cited by 8 (0 self) - Add to MetaCart
We develop a new model of household sorting in a system of residential neighborhoods. We show that this model is partially identified without imposing parametric restrictions on the distribution of unobserved tastes for neighborhood quality and the shape of the indirect utility function. The proof of identification is constructive and can be used to derive a new semiparameteric estimator. Our empirical application focuses on residential choices in the Pittsburgh metropolitan area. We find that sorting of households with children exhibit more stratification by income than sorting of households without children.
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