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By Pablo Cuellar
Have you ever wondered why certain areas in your city are worth more than others? I have!
So of course, I found a dataset with information on Boston real estate to put my skills to the test.
The authors of this dataset (Harrison, D. and Rubinfeld, D.L) from Carnegie Mellon University
had an intention in mind when compiling this data. (Abstract below)
“This paper investigates the methodological problems associated with the use of housing market data to measure the willingness to pay for clean air. With the use of a hedonic housing price model and data for the Boston metropolitan area, quantitative estimates of the willingness to pay for air quality improvements are generated. Marginal air pollution damages (as revealed in the housing market) are found to increase with the level of air pollution and with household income. The results are relatively sensitive to the specification of the hedonic housing price equation, but insensitive to the specification of the air quality demand equation.”
source: https://www.sciencedirect.com/science/article/abs/pii/0095069678900062
The report they conducted discusses features of air quality that may have affected the median
prices in the 1970s housing market of the Boston Standard Metropolitan Statistical Area (SMSA).