Providing Rational and Normative Policy Evaluation with Hedonic Estimation in Developing and Emerging Market Economies

Abstract

Market economy and democratic evolution in public policy requires a shift from a comprehensive rational and positivism approach to including normative considerations through a social participatory thesis. The key question of this chapter's examination is: Do the fundamental ideas of econometric evaluation of land value as a basis for public policy contribute worth for the society as a whole? Policy that exploits market mechanisms cannot be developed in isolation of the larger societal needs that are required to enrich democracy. To do this, the authors provide an econometric model of valuation of land to test and predict policy outcomes to enhance democratic transition. Establishing market value is a tool that supports policy economic development goals and normative outcomes desired through political transparency in the emergence to democratic processes. The authors conclude with recommendations for implementation to support stakeholders in the policymaking process.