TY - JOUR
T1 - Household Location and Tiebout
T2 - Do Families Sort According to Preferences for Locational Amenities?
AU - Hoyt, William H.
AU - Rosenthal, Stuart S.
N1 - Funding Information:
US. S. Rosenthal gratefully acknowledges financial support from the Real Estate Institute of British Columbia and the Social Science and Research Council of Canada SSHRC). We thank two anonymous referees, Jan Brueckner, Charles de BartolomÂe, Dennis Epple, Bob Helsley, Vernon Henderson, and William Strange for helpful comments. Any remaining errors, of course, are our own.
PY - 1997/9
Y1 - 1997/9
N2 - If households sort efficiently across locations, then at a given location families receive the same marginal benefit from the locational amenities. We test for such sorting by imposing cross-equation restrictions on hedonic regressions that difference away location- versus house-specific effects. Estimates are obtained using a unique subset of the American Housing Survey in which adjacent housing units are grouped together and observed in both 1985 and 1989. Rejection of the cross-equation restrictions unambiguously implies an inefficient sorting of households. In contrast, the data support the cross-equation restrictions which is a necessary but not sufficient condition for efficient sorting.
AB - If households sort efficiently across locations, then at a given location families receive the same marginal benefit from the locational amenities. We test for such sorting by imposing cross-equation restrictions on hedonic regressions that difference away location- versus house-specific effects. Estimates are obtained using a unique subset of the American Housing Survey in which adjacent housing units are grouped together and observed in both 1985 and 1989. Rejection of the cross-equation restrictions unambiguously implies an inefficient sorting of households. In contrast, the data support the cross-equation restrictions which is a necessary but not sufficient condition for efficient sorting.
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U2 - 10.1006/juec.1996.2019
DO - 10.1006/juec.1996.2019
M3 - Article
AN - SCOPUS:0000008271
SN - 0094-1190
VL - 42
SP - 159
EP - 178
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 2
ER -