EEP/IAS 118
Steven Buck
Spring 2015
Discussion guide for “Land Markets and the Value of Water” (Buck, Auffhammer,
Sunding, 2014).
1.
What is this example about?
2.
How do notions of implicit and explicit markets relate to the hedonic model?
3.
In this example which good has an implicit market and which has an explicit market?
4.
What is the main dependent variable of interest in a hedonic model?
5.
Name a couple different types of market goods which we might study with a hedonic
model?
6.
Describe what is meant by external validity and how this differs from internal validity.
7.
Why does Table 2 help evaluate the external validity of the panel data estimates?
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EEP/IAS 118
8.
Steven Buck
Spring 2015
What does the zero conditional mean assumption mean again? And how does it relate to
omitted variable bias?
9.
Do I argue for or against the zero conditional mean assumption in the cross-sectional
setting?
10.
What’s a simple way to think about fixed effects in a regression equation?
11.
Based on your response to 10, what are year, hydrological and parcel fixed effects? What
types of things do they control for? What are the differences between the types of things they
control for?
12.
Why not include both hydrological and parcel fixed effects in the same regression?
13.
Why does Table 4 reflect robustness checks? What are robustness checks?
14.
Why do the authors suggest the external validity to all of California isn’t necessary for
economic significance?
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EEP/IAS 118
Steven Buck
Spring 2015
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EEP/IAS 118
Steven Buck
Spring 2015
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