We estimate hedonic price equations which have as their dependent variables local wages and property
prices. Independent variables come in four categories:
Economic and demographic variables: total per-capita gross provincial product, sectoral
shares, and population densities.
Infrastructure: highway, existence of international airports and domestic airports (dummy
variable), railway connections (dummy variable).
Education: average student/teacher ratio, number of schools (both local and centrally
provided).
Welfare and social services: existence of orphanages, women’s houses, homes for disabled
persons.
Data sources were not only widely dispersed, but the Asian crisis (which struck many countries in
1997) meant a partial interruption of data collection, such that some data are not available for the year
of 1998. We adjusted our estimation strategy correspondingly.