Abstract This paper extends discrete residential choice models by incorporating choice set formation. Most discrete residential choice models make relatively arbitrary assumptions about the choice set – the set of houses to be considered by the purchaser. In this paper we explore several formulations of endogenous choice sets in which the decision maker's selection of a choice set is based on certain attributes and the final selection is made from this reduced choice set. The proposed approach is empirically applied to a housing transaction dataset and welfare measures are generated for non-marginal changes associated with a water management policy. A comparison of models across different temporal windows to define an individual's choice set shows that model parameters are sensitive to the assumptions used to define the choice sets. The models that approximate choice set formation improve the efficiency of estimation and influence estimated welfare measures suggesting the importance of choice set formation in the context of discrete housing choice models.

中文翻译：

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水管理政策对住宅价格的经济影响分析：在离散房屋选择分析中修改选择集形成

摘要本文通过结合选择集形成扩展了离散的住宅选择模型。大多数离散的住宅选择模型都对选择集做出相对任意的假设，即购买者要考虑的一套住房。在本文中，我们探讨了内生选择集的几种表述，其中决策者根据某些属性选择一个选择集，并根据此缩减选择集进行最终选择。拟议的方法将根据经验应用于住房交易数据集，并针对与水管理政策相关的非边际变化生成福利指标。跨不同时间窗口的模型比较以定义个人的选择集表明，模型参数对用于定义选择集的假设敏感。