Identification and Semiparametric Estimation of Equilibrium Models of Local Jurisdictions
American Economic Journal: Microeconomics
vol. 2,
no. 4, November 2010
(pp. 195-220)
Abstract
We develop a new model of household sorting in a system of residential neighborhoods. We show that this model is partially identified without imposing parametric restrictions on the distribution of unobserved tastes for neighborhood quality and the shape of the indirect utility function. The proof of identification is constructive and can be used to derive a new semiparameteric estimator. Our empirical application focuses on residential choices in the Pittsburgh metropolitan area. We find that sorting of households with children exhibit more stratification by income than sorting of households without children. (JEL C51, D12, H41, J12, R21, R23)Citation
Epple, Dennis, Michael Peress, and Holger Sieg. 2010. "Identification and Semiparametric Estimation of Equilibrium Models of Local Jurisdictions." American Economic Journal: Microeconomics, 2 (4): 195-220. DOI: 10.1257/mic.2.4.195Additional Materials
JEL Classification
- C51 Model Construction and Estimation
- D12 Consumer Economics: Empirical Analysis
- H41 Public Goods
- J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse
- R21 Urban, Rural, and Regional Economics: Housing Demand
- R23 Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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