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psrc / urbansim2

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Instrumental price variable #38

Closed hanase closed 7 years ago

hanase commented 7 years ago

For #9.

From Mike's email 3/7/2011: it’s a smart instrumental variable, because the REPM residual by nature captures something about the building that the estimated price didn’t catch. Since it’s essentially monetary, we expect the coefficient to be positive—indicating desireable attributes of the building that our very rude REPM specification doesn’t capture (which could be things like extra bathrooms and views that more detailed real estate models do capture, or could be even less tangible things like nice architecture or neighborhood character).

hanase commented 7 years ago

Implemented in abstract_iv_residual called from ln_price_residual.