A dynamic, discrete-time model is estimated in order to analyze the evolution of perceived
risk around a hazardous waste site and its effect on property values. Residential property
values are modeled as a function of housing attributes and perceived risk from a nearby
hazardous waste site using an hedonic-price framework. Perceived risk enters the model as
a state equation, which includes a media coverage variable. Results indicate that media
coverage and high prior risk perception increase current perceived risk. Increased perceived …

A dynamic discrete time model is estimated in order to analyze the evolution of perceived
risk around a hazardous waste site and its effect on property values. Residential property
values are modeled as a function of housing attributes and perceived risk to health from a
nearby hazardous waste site using an hedonic price framework. Perceived risk enters the
model as a state equation, which includes a media coverage variable. An aggregate
measure of perceived risk is estimated and weighted by the distance to the hazardous waste …