Allen C. Goodman

Hedonic prices, price indices and housing markets

Abstract This paper extends hedonic price analysis to the formation of housing price indices measuring variation within a metropolitan area. In forming these indices fifteen submarkets, heterogeneous across time and space, are described within a short-run equilibrium model. Linear functional forms are generally rejected using a method proposed by Box and Cox. Aggregation of hedonic price coefficients into standardized units yields significantly higher housing prices in the central city than in its suburbs, as well as differential effects of structural and neighborhood improvements among submarkets.

An econometric model of housing price, permanent income, tenure choice, and housing demand

Abstract This paper addresses the determination of housing price, permanent income, tenure choice, and housing demand. Full housing demand elasticities incorporate the interactive effects among the four stages of the model. Price and income have major effects in the tenure choice equation. Sociodemographic variables, such as age, have complex effects that may be lost in simpler forms of estimation.

Permanent income, hedonic prices, and demand for housing: New evidence

Abstract Housing demand is examined by looking quite specifically at the income and price variables based on individual household data. Permanent and transitory incomes are computed through instrumental variables related to human and nonhuman wealth. A price is constructed by spatially varying hedonic techniques. Separation of measured income into permanent and transitory components substantially improves the predictive power of the housing demand estimation and leads to demand elasticities of +1 and −1 with respect to permanent income and price. The permanent income elasticity is roughly twice the measured income elasticity.

Demographics of individual housing demand

Abstract There has been little systematic treatment of demographic variables in the housing literature. This paper reviews methods used to include demographic variables in demand systems. It then discusses their inclusion in a system of housing demand equations in which tenure choice and demand are jointly determined and estimated. Explanatory power is enhanced substantially in both the tenure choice and the demand regressions by demographic variables. Elasticities at means are not substantively changed by demographic variables, but elasticities away from the means are sensitive to their inclusion. Blacks are slightly more likely to own than whites, all else equal; white demand, however, is 4.5 to 26.5 percent higher than black demand.

The spatial proximity of metropolitan area housing submarkets

An important question related to housing submarket construction is whether geographic areas must be spatially adjacent in order to be considered the same submarket. Housing consumers do not necessarily limit their search to spatially concentrated areas and may search similarly priced neighborhoods located throughout a metropolitan area when making housing consumption decisions. This article examines two alternative procedures for delineating submarkets: one that combines adjacent census block groups into areas with enough transactions to estimate the parameters of a hedonic house price equation and a second that permits spatial discontinuities in submarkets. The criterion used to evaluate the alternative techniques is the accuracy of hedonic house price predictions.

Hospitalizations for critically ill children with traumatic brain injuries: A longitudinal analysis*

Objective:This study examines the incidence, utilization of procedures, and outcomes for critically ill children hospitalized with traumatic brain injury over the period 1988–1999 to describe the benefits of improved treatment. Design:Retrospective analysis of hospital discharges was conducted using data from the Health Care Cost and Utilization Project Nationwide Inpatient Sample that approximates a 20% sample of U.S. acute care hospitals. Setting:Hospital inpatient stays from all types of U.S. community hospitals. Participants:The study sample included all children aged 0–21 with a primary or secondary ICD-9-CM diagnosis code for traumatic brain injury and a procedure code for either endotracheal intubation or mechanical ventilation. Interventions:None. Measurements and Main Results:Deaths occurring during hospitalization were used to calculate mortality rates. Use of intracranial pressure monitoring and surgical openings of the skull were investigated as markers for the aggressiveness of treatment. Patients were further classified by insurance status, household income, and hospital characteristics. Over the 12-yr study period, mortality rates decreased 8 percentage points whereas utilization of intracranial pressure monitoring increased by 11 percentage points. The trend toward more aggressive management of traumatic brain injury corresponded with improved hospital outcomes over time. Lack of insurance was associated with vastly worse outcomes. An estimated 6,437 children survived their traumatic brain injury hospitalization because of improved treatment, and 1,418 children died because of increased mortality risk associated with being uninsured. Improved treatment was valued at approximately

Following a panel of stayers: Length of stay, tenure choice, and housing demand

17 billion, whereas acute care hospitalization costs increased by

Percutaneous Cryoablation of Metastatic Renal Cell Carcinoma for Local Tumor Control: Feasibility, Outcomes, and Estimated Cost-effectiveness for Palliation

1.5 billion (in constant 2000 dollars). Increased mortality in uninsured children was associated with a

Dwelling age heteroskedasticity in repeat sales house price equations

3.76 billion loss in economic benefits. Conclusions:More aggressive management of pediatric traumatic brain injury appears to have contributed to reduced mortality rates over time and saved thousands of lives. Additional lives could be saved if mortality rates could be equalized between insured and uninsured children.

Functional form, sample selection, and housing demand

Abstract Due to moving and transactions costs, most housing buyers do not routinely move in response to small changes in income or housing price. In this paper, the “own–rent,” “move–stay,” and length-of-stay decisions are modeled as multi-period optimization in the presence of transactions costs. The empirical section uses the American Housing Survey to provide a unique 12-year panel of household stayers for the Detroit metropolitan area. Results indicate that income and value–rent measures in different years have separable and significant impacts on housing demand. Estimated full income elasticities are between 0.30 and 0.35.