The aroma of Tacoma: Time-varying average derivatives and the effect of a superfund site on house prices

Daniel P McMillen, Paul Thorsnes

Research output: Contribution to journalArticlepeer-review

Abstract

A variant of the average derivative estimator is developed to construct an index measuring the effects of a copper smelter on house prices in Tacoma, Washington. The estimated average derivative index is smooth and has lower standard errors than regression coefficients estimated separately across discrete time periods. The dataset spans the time of initial rumors of Superfund site designation, the closing of the smelter, Superfund site designation, and the start of cleanup operations. The addition of the smelter to the Superfund site and the subsequent plant closing converted the price discount associated with smelter proximity to a premium.

Original languageEnglish (US)
Pages (from-to)237-246
Number of pages10
JournalJournal of Business and Economic Statistics
Volume21
Issue number2
DOIs
StatePublished - Apr 1 2003
Externally publishedYes

Keywords

  • House price index
  • Nonparametric
  • Semiparametric

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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