A Spatiotemporal Autoregressive Price Index for the Paris Office Property Market
AbstractThis article applies the spatiotemporal hedonic approach to the analysis of office transaction prices in the Paris property market ("i.e"., central Paris and its inner suburbs). The analysis focuses primarily on the market's two main business districts (the Central Business District and the La Défense District). We find that spatial and temporal dependence effects are strongly present in these submarkets. Additionally, we propose a hybrid method for incorporating a temporal regime switch into the spatiotemporal autoregressive model. The regime switching around 1997 ("i.e.", in the presence of temporal heterogeneity) substantially affects the significance of spatial and temporal dependences. Finally, we build a new price index that incorporates both spatiotemporal dependences and temporal heterogeneity. This index differs strongly from the usual hedonic price index. Copyright (c) 2009 American Real Estate and Urban Economics Association.
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Bibliographic InfoArticle provided by American Real Estate and Urban Economics Association in its journal Real Estate Economics.
Volume (Year): 37 (2009)
Issue (Month): 2 ()
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Other versions of this item:
- Nappi-Choulet, Ingrid & Maury, Tristan-Pierre, 2008. "A Spatiotemporal Autoregressive Price Index for the Paris Office Property Market," ESSEC Working Papers DR 08008, ESSEC Research Center, ESSEC Business School.
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
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