Estimating Ricardian Models With Panel Data
Emanuele Massetti, Robert Mendelsohn
Q1, Q12, Q51, Q54
Climate Change, Impacts, Agriculture, Hedonic Models
Climate Change and Sustainable Development
Many nonmarket valuation models, such as the Ricardian model, have been estimated using cross sectional methods with a single year of data. Although multiple years of data should increase the robustness of such methods, repeated cross sections suggest the results are not stable. We argue that repeated cross sections do not properly specify the model. Panel methods that correctly specify the Ricardian model are stable over time. The results suggest that many cross sectional methods including hedonic studies and travel cost studies could be enhanced using panel data.
Suggested citation: Emanuele Massetti and Robert Mendelsohn, Estimating Ricardian Models With Panel Data, Clim. Change Econ. 02, 301 (2011), http://dx.doi.org/10.1142/S2010007811000322