Article

 

ACID DEPOSITION IN URBAN AREAS: AN EQUILIBRIUM APPROACH (p.93-107)

by

Dimitrios A. GIANNIAS, HELLENIC OPEN UNIVERSITY

Keywords : Hedonic models, Differentiated goods, Structural analysis, Acid deposition

JEL classification : D01, D04, D90, D59, D40, D49

Abstract

This paper presents an equilibrium model of a market for differentiated products that is offered for studying the effects of acid deposition on residential areas. Analytical solutions are computed for all the endogenous variables. All the cross equation restrictions of the model are specified. The model is offered for empirical work and has nice aggregation properties. To investigate whether there are acid deposition effects on urban areas, the model looks at the rental and owner's occupied housing markets. Markets are modeled under the assumption of rational expectations.