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Research Spending & Results

Award Detail

Awardee:NATIONAL OPINION RESEARCH CENTER
PD/PI:
  • James Heckman
  • j-heckman@uchicago.edu
Co-PD(s)/co-PI(s):
  • Rosa L Matzkin
  • L. Ridgway Scott
  • Lars P Nesheim
Award Date:08/21/2003
Estimated Total Award Amount: $ 999,577
Funds Obligated to Date: $ 999,577
  • FY 2005=$250,474
  • FY 2004=$249,103
  • FY 2003=$500,000
Start Date:09/01/2003
End Date:08/31/2007
Transaction Type:Grant
Agency:NSF
Awarding Agency Code:4900
Funding Agency Code:4900
CFDA Number:47.075
Primary Program Source:490100 NSF RESEARCH & RELATED ACTIVIT
Award Title or Description:Collaborative Research on the Formulation, Estimation, and Identification of Hedonic Pricing, Demand and Supply Models
Federal Award ID Number:0241858
DUNS ID:069512291
Parent DUNS ID:069512291
Program:Economics

Awardee Location

Street:1155 E. 60th Street
City:Chicago
State:IL
ZIP:60637-2745
County:Chicago
Country:US
Awardee Cong. District:01

Primary Place of Performance

Organization Name:National Opinion Research Center
Street:1155 E. 60th Street
City:Chicago
State:IL
ZIP:60637-2745
County:Chicago
Country:US
Cong. District:01

Abstract at Time of Award

This award is jointly supported by the Division of Mathematical Sciences and the Directorate for Social, Behavioral, and Economic Sciences as part of the Mathematical Sciences Priority Area. Economics models for hedonic markets characterize the pricing of differentiated goods viewed as bundles of attributes, and the demand and supply of those attributes under different market structures, preferences, and technologies. Hedonic models provide insight into the economics of variety and heterogeneity, which are features of modern labor and product markets. Using hedonic models, it is possible to interpret wage data for heterogeneous labor, evaluate workplace safety laws and analyze subsidies for wages and job training in terms of their impacts on equilibrium wages and prices and on market participant welfare. Hedonic models lie at the heart of modern methods to adjust cost of living indices for changes in quality. This research will develop the economic foundations of hedonic models in more general settings than have been developed to date. Specifically, the research will characterize the properties of alternative hedonic economies, including the existence and uniqueness of hedonic pricing models in multi-attribute models under different assumptions about dimensions of heterogeneity that characterize agents, competitive structure of markets, the grouping of agents into coalitions, characteristics priced in the market, and the nature of the heterogeneity of agents. Computation of hedonic equilibria is of interest in its own right, and for determining the consequences of alternative assumptions on pricing, as well as for exploring the impacts of different policies on producer and consumer welfare. It is also an essential ingredient in the econometric analyses we propose to conduct. Our analysis of existence and uniqueness is a vital step in developing computationally robust methods for simulating hedonic economies and for recovering preferences and technologies from hedonic economies. This research will also conduct and econometric analyses of hedonic economies under alternative assumptions about market structure, technology and preferences, and the information available to agents and to econometricians. We will conduct identification analysis and develop nonparametric and semiparametric methods to recover the primitives of preferences, technology, the distributions of productivities and preferences. We will apply these econometric methods to analyze the determinants of earnings, housing prices and public goods using data on individuals, firms, and communities. We also propose to examine identification problems in models of social interactions using information on prices to solve identification problems.

Publications Produced as a Result of this Research

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Cunha, F. and J. J. Heckman "The Technology of Skill Formation" American Economic Review, v.97(2), 2007, p.31.

Heckman, J. J.; Stixrud, J. and Urzua, S. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior" Journal of Labor Economics, v.24(3), 2006, p.411.

Altonji, Jospeh and Rosa Matzkin "Cross Section and Panel Data Estimators for Nonseparable Models with Endogenous Regressors" Econometrica, v.73, 2005, p.1053.

Matzkin, Rosa "Review of Handbook of Econometrics, Vol. 5, edited by J.J. Heckman and E. Leamer" Journal of Economic Literature, v.40, 2004, p.842.

Matzkin, Rosa "Nonparametric Survey Response Errors" International Economic Review, v.48, 2007, p.1409.

Matzkin, Rosa "Nonparametric Estimation of Nonadditive Random Functions" Econometrica, v.71, 2003, p.1339.

Cunha, Flavio, James Heckman, and Salvador Navarro "Separating uncertainty from heterogeneity in life cycle earnings. (The 2004 Hicks Lecture)" Oxford Economic Papers, v.57(2), 2005, p.191.

Aliprantis, Charalambos, Rosa Matzkin, Daniel McFadden, Jore Moore, and Nicholas Yannelis "Foreword to Rationality and Equilibrium- A Symposium in Honor of Marcel K. Richter" Economic Theory, v.26(2), 2005, p.243.

Cunha, F. and J. J. Heckman "Identifying and Estimating the Distributions of Ex Post and Ex Ante Returns to Schooling" Labour Economics, v.14(6), 2007, p.870.

Ekeland, Ivar, James Heckman, and Lars Nesheim "Identification and Estimation of Hedonic Models" The Journal of Political Economy, v.112, 2004, p.S60.

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