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Numerous hedonic price analyses estimate price effects associated with hazardous waste site remediation or other environmental variation. This paper estimates a neighborhood transition model to capture the direct price effect from Superfund site clean-up and the indirect price effects arising from residential sorting and changes in investment in the housing stock following clean-up. First-difference models of neighborhood change and a national sample are used. This approach fails to find consistent positive direct price effects. Positive indirect effects, however, may arise through residential sorting and neighborhood investment spurred by remediation. The findings can be sensitive to policy endogeneity and model specification.
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Document Type: Research Article

Affiliations: 1: School of Public Policy, Georgia Institute of Technology, Atlanta, GA 30332-0345., Email: [email protected] 2: Senior Research Associate, IZA, Bonn, Germany., Email: [email protected] 3: Senior Associate, Industrial Economics, Inc. Cambridge, MA, Email: [email protected]

Publication date: 2007-10-01

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