Abstract

It is gratifying to find that one's work has not gone unread but has motivated others to work on the same problem and offer improvements. As it happens, however, the study by Erekson and Witte [1] differs from my own [2] in one critical procedure, and it is this, I believe, which introduces bias to their seemingly unrelated regression (SUR) results. Since I did something else, I doubt that their finding of bias in their own results is applicable to my own. Both procedures have merit, so it is useful to point out the differences. E-W have estimated hedonic price equations for each housing market in their sample. Prices of housing characteristics to be used in the demand study are obtained from these by calculating

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