nep-res New Economics Papers
on Resource Economics
Issue of 2009‒10‒24
four papers chosen by
Maximo Rossi
Universidad de la Republica

  1. A house price index defined in the potential outcomes framework By Nicholas Longford
  2. Gasoline Prices and Traffic Safety: Age and Gender Variations By Guangqing Chi; Arthur Cosby; Paul Gilbert; David Levinson
  3. Evaluation with Dynamic Reference: Sustainable Investment By Leon Vinokur
  4. The Impact of Chernobyl on Health and Labour Market Performance in the Ukraine By Lehmann, Hartmut; Wadsworth, Jonathan

  1. By: Nicholas Longford
    Abstract: Current methods for constructing house price indices are based on comparisons of sale prices of residential properties sold two or more times and on regression of the sale prices on the attributes of the properties and of their locations. The two methods have well recognised deficiencies, selection bias and model assumptions, respectively. We introduce a new method based on propensity score matching. The average house prices for two periods are compared by selecting pairs of properties, one sold in each period, that are as similar on a set of available attributes (covariates) as is feasible to arrange. The uncertainty associated with such matching is addressed by multiple imputation, framing the problem as involving missing values. The method is applied to aregister of transactions ofresidential properties in New Zealand and compared with the established alternatives.
    Keywords: Hedonic regression, house prices, matching, potential outcomes, propensity scoring, repeat-sales method
    JEL: C1 C13 C15 C3 C31 E3 E31
    Date: 2009–10
  2. By: Guangqing Chi; Arthur Cosby; Paul Gilbert; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Gasoline prices have significant effects on traffic safety. However, existing literature has failed to adequately investigate the effects: the literature has examined only fatal incidents rather than total traffic incidents. This study analyzes the effects of gasoline prices on total traffic incidents and on the incidents by age and gender. The results suggest that gasoline prices have negative short-term effects on traffic safety: as gasoline prices increase, overall traffic incident rates decrease. Gasoline prices have disproportionate effects in reducing traffic incident rates for young drivers and female drivers, longer-term effects on drivers who are 24 years and older, and no effects on male drivers. This study fills the gap in the literature by contributing to the understanding of gasoline price effects on traffic incidents by examining all traffic incidents instead of only fatal incidents and by examining incidents by age and gender.
    Keywords: gasoline prices, traffic incidents, traffic safety, age, gender
    JEL: R41 R48 Q41 R51
    Date: 2009
  3. By: Leon Vinokur (Queen Mary, University of London)
    Abstract: The Prospect Theory proposes to assess outcomes relative to a reference point (or benchmark). Although the literature recognises the relevance of dynamic benchmarks, most of the applications of Prospect Theory employ static reference points (or a status quo). This paper aims to develop a Prospect Theory framework for investment under uncertainty subject to a dynamic reference point, within the context of environmental policy making, where the distinction between a dynamic and a static frameworks is crucial. I evince that, in contrast to the static framework, in a dynamic framework the investor measures not only the absolute but also the relative risk premium (Sharpe ratio) of the investment opportunity, incorporating the risks and returns of a reference portfolio. I propose that there exists a relation between static and dynamic frameworks. Using the dynamic framework, I argue that in the environmental context international co-operation is the key to a successful environmental policy.
    Keywords: Prospect theory, Dynamic reference, Sustainable development
    JEL: D46 G18 Q58
    Date: 2009–10
  4. By: Lehmann, Hartmut (University of Bologna); Wadsworth, Jonathan (Royal Holloway, University of London)
    Abstract: Using longitudinal data from the Ukraine we examine the extent of any long-lasting effects of radiation exposure from the Chernobyl disaster on the health and labour market performance of the adult workforce. The variation in the local area level of radiation fallout from the Chernobyl accident is considered as a potential instrument to try to establish the causal impact of poor health on labour force participation, hours worked and wages. There appears to be a significant positive association between local area-level radiation dosage and health perception based on self-reported poor health status, though much weaker associations between local area-level dosage and other specific health conditions or labour market performance. Any effects on negative health perceptions appear to be stronger among women and older individuals.
    Keywords: Chernobyl, health, labour market performance
    JEL: H00 J00
    Date: 2009–10

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