A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

Book reviews

Leonard Blussé. Strange company: Chinese settlers, mestizo women, and the Dutch in VOC Batavia . xiii, 302 pp. Dordrecht: Foris Publications, 1986. (Verhandelingen van het Kononklijk Instituut voor Taal‐, Land‐ en Volkenkunde, 122.) Guilders 35.

John S. Guy. Oriental trade ceramics in South‐East Asia, ninth to sixteenth centuries. With a catalogue of Chinese, Vietnamese, and Thai wares in Australian collections, xiv, 161 pp. Singapore, etc: Oxford University Press, 1986. (Oxford in Asia Studies in Ceramics.) £47.50.