Spatial Heterogeneity in Hedonic Price Effects for Lake Water Quality

Kristen Swedberg, Diego S. Cardoso, Adriana Castillo-Castillo, Saleh Mamun, Kevin J. Boyle, Christoph Nolte, Michael Papenfus, and Stephen Polasky. (Under review)

Abstract This study uses Zillow’s ZTRAX property transaction database to investigate variation in hedonic price effects for lake water quality throughout the United States. We consider different market boundary definitions at five spatial scales and estimate models using different combinations of sample selection criteria and model specifications. Our results indicate considerable spatial heterogeneity both within and across political regions and ecoregions. Elasticity estimates are sensitive to market boundary definition in all regions except the Midwest. Regional medians are stable across different specifications in the Northeast and Midwest and unstable in the South and the West.