Multiple Regime Bid-Rent Function Estimation

Daniel P. McMillen

Research output: Contribution to journalArticlepeer-review


This paper reviews estimators for multiple regime selection models, which include the standard urban bid-rent model as a special case.4probabilistic bid-rent model imposes a restrictive selection process, while existing two-stage multiple regime estimators assume an error structure that is inconsistent with bid-rent theory. Monte Carlo experiments demonstrate that two-stage estimators are accurate and robust to distributional misspecification. The practical usefulness of the estimators is illustrated using data on 1920s Chicago land values.

Original languageEnglish (US)
Pages (from-to)301-319
Number of pages19
JournalJournal of Urban Economics
Issue number2
StatePublished - Mar 1997

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies


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