Information, migration, and the value of clean air

• Published in: Journal of development economics Vol. 163; p. 103079
• Main Authors: Gao, Xuwen, Song, Ran, Timmins, Christopher
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.06.2023
• Subjects: Compensating differential; Information; Migration; Particulate matter; Rosen-Roback; J61; Migration; Particulate matter; Information; Q51; Rosen-Roback; Compensating differential; D83

Using a variant of the Rosen-Roback model of inter-city migration that incorporates public access to air quality information, we demonstrate that information constraints create a wedge between revealed and true hedonic prices for pollution that depends upon individuals’ perception biases. We empiric...