Carl Mason

Non‐parametric hedonic housing prices

Abstract The hedonic price function has long been a standard tool for modeling the price of complex commodities, such as housing. The theoretical basis of the model is sound and appealing, but applications often encounter difficulties. The results of hedonic models depend on inclusion of the right independent variables and the correct specification of the functional form. The functional form assumption is particularly difficult in the housing context because the hedonic price function summarizes not only consumer preferences and production technology, but also various quantities which are historically determined, difficult to measure, and not approachable by theory. In this paper, the functional form assumption is relaxed by estimating the hedonic price function as a General Additive Model (GAM). The GAM is considerably more general than conventional hedonic models and offers significant advantages in comprehensibility over other non‐parametric procedures. The model is used to analyze the substantial decl...

Spinning the wheels and rolling the dice: life-cycle risks and benefits of bicycle commuting in the U.S.

OBJECTIVE To assess the net impact on U.S. longevity of the decision to commute by bicycle rather than automobile. METHODS We construct fatality rates per distance traveled using official statistics and denominators from the 2009 National Household Travel Survey. We model the life-table impact of switching from auto to bicycle commuting. Key factors are increased risks from road accidents and reduced risks from enhanced cardiovascular health. RESULTS Bicycling fatality rates in the U.S. are an order of magnitude higher than in Western Europe. Risks punish both young and old, while the health benefits guard against causes of mortality that rise rapidly with age. Although the protective effects of bicycling appear significant, it may be optimal to wait until later ages to initiate regular bicycle commuting in the current U.S. risk environment, especially if individuals discount future life years. CONCLUSIONS The lifetime health benefits of bicycle commuting appear to outweigh the risks in the U.S., but individuals who sufficiently discount or disbelieve the health benefits may delay or avoid bicycling. Bicycling in middle age avoids much fatality risk while capturing health benefits. Significant cross-state variations in bicycling mortality suggest that improvements in the built environment might spur changes in transit mode.