Hedonic Vices: Fixing Inferences about Willingness to Pay in Recent House-Value Studies

2015 ◽  
Vol 7 (2) ◽  
pp. 248-291 ◽  
Author(s):  
John Yinger ◽  
Phuong Nguyen-Hoang
Keyword(s):  
Political Economy ◽  
Simulation Model ◽  
Product Differentiation ◽  
Hedonic Regression ◽  
Basic Principles ◽  
Housing Characteristics ◽  
Conceptual Background ◽  
Functional Forms ◽  
Using Data ◽  
House Value

A key tool for studying the demand for neighborhood amenities and estimating the benefits from amenity improvements is a regression of house value on amenity levels, controlling for housing characteristics. Several scholars have developed methods to address the methodological challenges, such as endogeneity, faced by these “hedonic” regressions. Unfortunately, however, some recent studies neglect basic principles of hedonic estimation in Rosen [(1974). Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition. Journal of Political Economy, 82 (1), 34–55]. After providing conceptual background, this article explains these hedonic “vices” and how to avoid them. We focus on inappropriate functional forms, inappropriate control variables, and misinterpretation of hedonic regression results. Our analysis is supported using data from the Cleveland area in 2000 and a simulation model.

scholarly journals Optimising pasture and grazing management decisions on the Cicerone Project farmlets over variable time horizons

2013 ◽  
Vol 53 (8) ◽  
pp. 796 ◽  
Author(s):  
Karl Behrendt ◽  
Oscar Cacho ◽  
James M. Scott ◽  
Randall Jones
Keyword(s):  
Simulation Model ◽  
Strategic Decision ◽  
Stochastic Dynamic ◽  
Economic Returns ◽  
Strategic Decisions ◽  
Trade Offs ◽  
Using Data ◽  
Time Frames ◽  
The Impact ◽  
Stocking Rates

This study addresses the problem of balancing the trade-offs between the need for animal production, profit, and the goal of achieving persistence of desirable species within grazing systems. The bioeconomic framework applied in this study takes into account the impact of climate risk and the management of pastures and grazing rules on the botanical composition of the pasture resource, a factor that impacts on livestock production and economic returns over time. The framework establishes the links between inputs, the state of the pasture resource and outputs, to identify optimal pasture development strategies. The analysis is based on the application of a dynamic pasture resource development simulation model within a seasonal stochastic dynamic programming framework. This enables the derivation of optimum decisions within complex grazing enterprises, over both short-term tactical (such as grazing rest) and long-term strategic (such as pasture renovation) time frames and under climatic uncertainty. The simulation model is parameterised using data and systems from the Cicerone Project farmlet experiment. Results indicate that the strategic decision of pasture renovation should only be considered when pastures are in a severely degraded state, whereas the tactical use of grazing rest or low stocking rates should be considered as the most profitable means of maintaining adequate proportions of desirable species within a pasture sward. The optimal stocking rates identified reflected a pattern which may best be described as a seasonal saving and consumption cycle. The optimal tactical and strategic decisions at different pasture states, based on biomass and species composition, varies both between seasons and in response to the imposed soil fertility regime. Implications of these findings at the whole-farm level are discussed in the context of the Cicerone Project farmlets.

scholarly journals Patient Flow Simulation Using Historically Informed Synthetic Data

2021 ◽  
Author(s):  
Ezra Kenny ◽  
Hamed Hassanzadeh ◽  
Sankalp Khanna ◽  
Justin Boyle ◽  
Sandra Louise
Keyword(s):  
Emergency Department ◽  
Simulation Model ◽  
Patient Flow ◽  
Discrete Event ◽  
Synthetic Data ◽  
Flow Simulation ◽  
Average Patient ◽  
Future Demands ◽  
Healthcare Administrators ◽  
Using Data

Hospital overcrowding is a major problem for healthcare systems around the globe. In order to better estimate future demands and adequate resources for coping with such demands, statistical and computerised modelling can be applied. This can then allow healthcare administrators and decision makers to quantify the impacts of various “what-if” scenarios on hospital performance measures. This paper investigates the application of Discrete Event Simulation towards optimising Emergency Department resources while measuring overall length of stay and queuing time of emergency patients as a target performance measure. In particular, we explore strategies for generating historically informed synthetic data that helps the simulation model track patient flow through the target hospital over a future time frame. Using the developed simulation model, several resource configurations are tested using data from one of the busiest emergency departments in the state of Queensland as the baseline while quantifying the impacts of such changes on key patient flow metrics. It was found that adding a single bed (and associated resources) to the emergency department would result in a 23% decrease in average patient treatment delay.

Modern Hypermarket Receiving Yard Utilization: The Implementation of a Simulation Model

2017 ◽  
Vol 2 (4) ◽  
pp. 33-39
Author(s):  
Mohammad Annas
Keyword(s):  
Simulation Model ◽  
Exponential Distribution ◽  
Poisson Distribution ◽  
Waiting Time ◽  
Arrival Rate ◽  
Jel Classification ◽  
Utilization Rate ◽  
Processing Times ◽  
Kolmogorov Smirnov ◽  
Using Data

Objective - This research is a direct observation of initial queuing, using data that is categorised into two clusters: the number of people queuing at busy hours, and processing times in the same circumstances. Methodology/Technique - The raw data was converted for use in the Poisson distribution test, as well as the Kolmogorov-Smirnov exponential distribution options. An arena simulation model was also applied to identify the vendor's waiting time and to analyse receiving yard utilization. The average waiting time according to the Poisson distribution, the average serving time per vendor by an exponential distribution, and the number of receiving yards, are all essential factors effecting the utilization of receiving yards. Findings - The study compares the length of queues, serving times, arrival rate, and time in the system using dual and single receiving yard systems. However, the utilization rate on a two receiving yards system is less than the rate on single receiving yard system. As the aim of this study is to identify the utilization rate of the receiving yard, a single receiving yard operation is more representative of modern hypermarkets, and more efficient in terms of resource efficiency. Novelty - This study depends fully on the homogeneous operating hours of the retailers' receiving yards, the type of vehicle used by vendors to unload merchandises, procedures on moving the products to the inspections phase, a generalization of the products delivered by the vendors and the size of the modern hypermarkets business itself. Type of Paper: Empirical. Keywords: Receiving Yard Utilization; Hypermarket Receiving Yard; Queuing Simulation. JEL Classification: M1, M10, M19.

scholarly journals Hedonic Estimation Applied to the Farmland Market in Georgia

1994 ◽  
Vol 26 (2) ◽  
pp. 351-366 ◽  
Author(s):  
R.L. Elad ◽  
I.D. Clifton ◽  
J.E. Epperson
Keyword(s):  
Product Differentiation ◽  
Hedonic Model ◽  
Spatial Extent ◽  
Consumptive Use ◽  
Functional Forms ◽  
Box Cox Transformation ◽  
Level Of Importance ◽  
Hedonic Estimation

AbstractFarmland offered for its productive or consumptive value may be viewed as a class of goods characteristic of product differentiation. Using the generalized Box-Cox transformation, an unrestricted hedonic model was employed to derive implicit valuations of parcel attributes. Results suggest that the significance and level of importance of attributes on land pricing depends on the spatial extent of markets in Georgia. Differences in the productive or consumptive use of farmland may imply that different factors and functional forms are appropriate to different farmland markets.

Application of a Maize Crop Simulation Model in the Central Region of Malawi

1995 ◽  
Vol 31 (2) ◽  
pp. 213-226 ◽  
Author(s):  
P. K. Thornton ◽  
A. R. Saka ◽  
U. Singh ◽  
J. D. T. Kumwenda ◽  
J. E. Brink ◽  
...  
Keyword(s):  
Simulation Model ◽  
Field Experiments ◽  
Data Sets ◽  
Management Options ◽  
Maize Crop ◽  
Maize Production ◽  
Policy Makers ◽  
Crop Simulation Model ◽  
Crop Simulation ◽  
Using Data

SUMMARYA computer crop simulation model of the growth and development of maize was validated using data sets obtained from field experiments run at various sites in the mid-altitude maize zone of central Malawi between 1989 and 1992. The model was used to provide information concerning management options such as the timing and quantity of nitrogen fertilizer applications and to quantify the weather-related risks of maize production in the region. It was linked to a Geographic Information System to provide information at a regional level that could ultimately be of value to policy makers and research and extension personnel.

scholarly journals Enhancing laboratory activity with computer-based tutorials

2011 ◽  
Vol 3 (1) ◽  
Author(s):  
Gordon Ritchie ◽  
Paul Garner
Keyword(s):  
Circuit Design ◽  
Semiconductor Devices ◽  
Laboratory Work ◽  
First Year ◽  
Basic Principles ◽  
Laboratory Activity ◽  
Large Classes ◽  
Electronic Engineering ◽  
Computer Based ◽  
Using Data

In a degree course in electronic engineering, great importance is attached to laboratory work, in which students have the opportunity to develop their creative skills in a practical environment. For example, in the first year of the course they are expected to design and test some basic circuits using data available on the characteristics of the semiconductor devices to be used. Many of the students cannot be prepared sufficiently for this activity by attendance at lectures, in which basic principles are expounded to large classes. Firstyear students have widely differing knowledge, experience and ability in circuit design. Therefore, without individual tuition many of them are insufficiently prepared for their laboratory work. Weaker students often neglect to study the laboratory documentation thoroughly in advance and they make poor progress in the laboratory.DOI:10.1080/0968776950030107

scholarly journals GREEN LIVING ROOF SIMULATION MODEL REVIEW

2019 ◽  
pp. 104-110
Author(s):  
Dimitrijević Jovanović ◽  
Predrag (Miodrag) Zivkovic ◽  
Jelena Janevski ◽  
Mica Vukic ◽  
Ana Momcilovic ◽  
...  
Keyword(s):  
Simulation Model ◽  
Urban Areas ◽  
Architectural Design ◽  
Heat Waves ◽  
Building Envelope ◽  
Climatic Zones ◽  
Urban Level ◽  
Using Data ◽  
The Impact ◽  
Warm Temperate

Integration of nature, live, organic materials, in the design of built areas and building structure is an architectural response to environmental problems of dense urban areas. At the site where green space is limited, greening the building envelope is the solution for the issues such as heat waves, flooding, and noise and air pollution. The benefits could be predicted only using accurate simulation model of this technology. The energy balance of green living roof was researched through models developed over the years by various authors. Most models have been developed and validated with data from extensive roofs and more than 50% of the models were validated using data from warm temperate climatic zones. Ability to determine the impact of green living roofs at different stages of their architectural design process is of most importance if the incorporation this technology is planned due to the impact on building and urban level.

scholarly journals Reliability Assessment of MV Power Connections

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 6965
Author(s):  
Piotr Hoduń ◽  
Michał Borecki
Keyword(s):  
Numerical Model ◽  
Simulation Model ◽  
Analytical Methods ◽  
Complex Analysis ◽  
Power Grid ◽  
Reliability Assessment ◽  
Analytical Models ◽  
Medium Voltage ◽  
Reliability Indicators ◽  
Using Data

This article presents an analysis of the reliability of the power grid using data on the failure rate of the medium voltage (MV) power grid from the last five years. The analysis of the state of the power grid was based on the data provided by the grid operator. The purpose of this article is to analyze the reliability assessment of the medium voltage (MV) power connections using various analytical methods, a simulation model and reliability indicators. The analysis was performed based on the defined categories of power outages in terms of their duration. This made it possible to determine the energy quality indicators in a selected power grid. Then, a more complex analysis was carried out to assess the convergence of the applied analytical models of reliability assessment with the actual results obtained for the power grid. Moreover, using ANSYS Multiphysics, a numerical model of the cable head was developed to analyze the processes taking place in this element of the power grid for various exploitation cases.

RESIDENTIAL PROPERTY PRICE INDICES FOR TOKYO

2015 ◽  
Vol 19 (8) ◽  
pp. 1659-1714 ◽  
Author(s):  
Erwin Diewert ◽  
Chihiro Shimizu
Keyword(s):  
Residential Property ◽  
Multiple Time ◽  
Hedonic Regression ◽  
Construction Costs ◽  
Property Price ◽  
Regression Techniques ◽  
Using Data ◽  
Constant Quality ◽  
Real Estate Sales ◽  
Collinearity Problem

This paper uses hedonic regression techniques to decompose the price of a house into land and structure components using real estate sales data for Tokyo. To get sensible results, a nonlinear regression model using data that covered multiple time periods was used. Collinearity between the amounts of land and structure in each residential property leads to inaccurate estimates for the land and structure value of a property. This collinearity problem was solved by using exogenous information on the rate of growth of construction costs in Tokyo in order to get useful constant-quality subindices for the price of land and structures separately.

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